The Warsaw stock exchange, GPW, has failed to make a shortlist of bidders for the Tel Aviv Stock Exchange amid a diplomatic row over Poland's contentious new law on the Holocaust, a Polish newspaper reported.
GPW, together with Polish state fund PFR, was one of more than 10 foreign stock exchanges that showed interest in buying a controlling 71.7% stake in the Tel Aviv Stock Exchange (TASE), which was demutualized last September to become a for-profit exchange.
The business daily Parkiet, citing sources close to the Israeli government, said the recent crisis in diplomatic relations after Poland enforced a law making it a criminal offense to suggest Poland was responsible for crimes committed by Nazis during World War II, was the reason why the GPW bid would not be considered.
"We are awaiting an official response from TASE," GPW said in an emailed response to Reuters when asked to comment.
A spokeswoman for TASE declined to comment.
Israeli officials have criticized the Polish law, arguing that it amounts to Holocaust denial. The Poles claim the law is necessary to combat rampant defamation, arguing that Poland was a victim, not a perpetrator, in the Holocaust.
