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El Al claims airline's buyer is frontman for non-Israeli father

Eli Rozenberg's newly created Kanfei Nesharim Aviation bought a 43% stake in Israel's flag carrier. "According to Israeli laws, buying a controlling stake by a foreigner is forbidden," El Al's lawyers assert.

by  Reuters and ILH Staff
Published on  09-25-2020 05:33
Last modified: 09-25-2020 05:33
Israir, Arkia suspend all international flights, El Al warns industry crashingReuters/Ronen Zvulun

El Al planes on the tarmac at Ben-Gurion International Airport | File photo: Reuters/Ronen Zvulun

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Israeli flag carrier El Al Israel is opposing the purchase of a controlling stake by religious student Eli Rozenberg, alleging he is a frontman for his father, who is not an Israeli citizen as required by law, according to a letter from its lawyers.

In the letter, the financially strapped group's board requests government ministers to reconsider giving the 27-year old Rozenberg control of Israel's flag carrier.

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Rozenberg's newly created Kanfei Nesharim Aviation bought $107 million worth of shares in an offering last week that gave him a nearly 43% stake in Israel's flag carrier.

He told El Al this week that he was assuming control of the airline and would make changes to the board.

Rozenberg, who is an Israeli citizen and resides in Israel, is the son of Kenny Rozenberg, chief executive of New York-based nursing home chain Centers Health Care.

"According to the laws and terms of El Al, buying a controlling stake by a foreigner is forbidden," El Al's lawyers wrote in the letter, adding control by an American could cause problems with flying rights to other countries.

It said data obtained by El Al shows Kenny Rozenberg controls Kanfei Nesharim.

El Al's board and representatives requested an urgent meeting with the relevant government officials.

A spokesman for Rozenberg said a legal response to El Al's concerns would come later on Thursday.

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