UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 11 )*
-----
PEC Israel Economic Corporation
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(Name of Issuer)
Common Stock (1.00 par value per share)
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(Title of Class of Securities)
705098-10-1
---------------------------------
(CUSIP Number)
James I. Edelson, 511 Fifth Avenue, New York, N.Y. 10017 (212) 551-8881
- ---------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to Receive Notices
and Communications)
March 24, 1994 and April 10, 1994
-------------------------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition which is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(b)(3) or (4), check the following
box ( )
Check the following box if a fee is being paid with the statement ( ). (A
fee is not required only if the reporting person:(1) has a previous
statement on file reporting beneficial ownership of more than five percent
of the class of securities described in Item 1; and (2) has filed no
amendment subsequent thereto reporting beneficial ownership of five percent
or less of such class.) (See Rule 13d-7.)
Note: Six copies of this statement, including all exhibits, should be filed
with the Commission. See Rule 13d-1(a) for other parties to whom copies are
to be sent.
*The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which
would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities
Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that
section of the Act but shall be subject to all other provisions of the Act
(however, see the Notes).
Page 1 of 10 pages
<PAGE>
SCHEDULE 13D
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|CUSIP No. 705098-10-1 | |Page 2 of 10 Pages |
- ------------------------- --------------------------
- ---------------------------------------------------------------------------
|1 | NAME OF REPORTING PERSON |
| | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON |
| | IDB Development Corporation Ltd. |
| | |
| | |
- ---------------------------------------------------------------------------
|2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) | | |
| | --- |
| | (b) |X| |
| | --- |
| | |
- ---------------------------------------------------------------------------
|3 | SEC USE ONLY |
| | |
| | |
- ---------------------------------------------------------------------------
|4 | SOURCE OF FUNDS |
| | Not Applicable |
| | |
- ---------------------------------------------------------------------------
|5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED | | |
| | PURSUANT TO ITEMS 2(d) or 2(e) --- |
| | |
- ---------------------------------------------------------------------------
|6 | CITIZENSHIP OR PLACE OF ORGANIZATION |
| | Israel |
| | |
- ---------------------------------------------------------------------------
| |7 | SOLE VOTING POWER |
| NUMBER OF | | -0- |
| -----------------------------------------------------------
| SHARES |8 | SHARED VOTING POWER |
|BENEFICIALLY | | 13,193,592 |
| -----------------------------------------------------------
|OWNED BY EACH |9 | SOLE DISPOSITIVE POWER |
| REPORTING | | -0- |
| -----------------------------------------------------------
| PERSON WITH |10| SHARED DISPOSITIVE POWER |
| | | 13,193,592 |
- ---------------------------------------------------------------------------
|11| AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | 13,193,592 |
| | |
- ---------------------------------------------------------------------------
|12| CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES | | |
| | CERTAIN SHARES --- |
| | |
- ---------------------------------------------------------------------------
|13| PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
| | 70.3% |
| | |
- ---------------------------------------------------------------------------
|14| TYPE OF REPORTING PERSON |
| | CO |
| | |
- ---------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
- ------------------------- --------------------------
|CUSIP No. 705098-10-1 | |Page 3 of 10 Pages |
- ------------------------- --------------------------
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|1 | NAME OF REPORTING PERSON |
| | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON |
| | IDB Holding Corporation Ltd. |
| | |
| | |
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|2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) | | |
| | --- |
| | (b) |X| |
| | --- |
| | |
- ---------------------------------------------------------------------------
|3 | SEC USE ONLY |
| | |
| | |
- ---------------------------------------------------------------------------
|4 | SOURCE OF FUNDS |
| | Not Applicable |
| | |
- ---------------------------------------------------------------------------
|5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED |X| |
| | PURSUANT TO ITEMS 2(d) or 2(e) --- |
| | |
- ---------------------------------------------------------------------------
|6 | CITIZENSHIP OR PLACE OF ORGANIZATION |
| | Israel |
| | |
- ---------------------------------------------------------------------------
| |7 | SOLE VOTING POWER |
| NUMBER OF | | -0- |
| -----------------------------------------------------------
| SHARES |8 | SHARED VOTING POWER |
|BENEFICIALLY | | 13,193,592 |
| -----------------------------------------------------------
|OWNED BY EACH |9 | SOLE DISPOSITIVE POWER |
| REPORTING | | -0- |
| -----------------------------------------------------------
| PERSON WITH |10| SHARED DISPOSITIVE POWER |
| | | 13,193,592 |
- ---------------------------------------------------------------------------
|11| AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | 13,193,592 |
| | |
- ---------------------------------------------------------------------------
|12| CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES | | |
| | CERTAIN SHARES --- |
| | |
- ---------------------------------------------------------------------------
|13| PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
| | 70.3% |
| | |
- ---------------------------------------------------------------------------
|14| TYPE OF REPORTING PERSON |
| | CO |
| | |
- ---------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
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|CUSIP No. 705098-10-1 | |Page 4 of 10 Pages |
- ------------------------- --------------------------
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|1 | NAME OF REPORTING PERSON |
| | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON |
| | Raphael Recanati |
| | Social Security No. ###-##-#### |
| | |
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|2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) | | |
| | --- |
| | (b) |X| |
| | --- |
| | |
- ---------------------------------------------------------------------------
|3 | SEC USE ONLY |
| | |
| | |
- ---------------------------------------------------------------------------
|4 | SOURCE OF FUNDS |
| | Not Applicable |
| | |
- ---------------------------------------------------------------------------
|5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED |X| |
| | PURSUANT TO ITEMS 2(d) or 2(e) --- |
| | |
- ---------------------------------------------------------------------------
|6 | CITIZENSHIP OR PLACE OF ORGANIZATION |
| | Israel |
| | |
- ---------------------------------------------------------------------------
| |7 | SOLE VOTING POWER |
| NUMBER OF | | -0- |
| -----------------------------------------------------------
| SHARES |8 | SHARED VOTING POWER |
|BENEFICIALLY | | 13,193,592 |
| -----------------------------------------------------------
|OWNED BY EACH |9 | SOLE DISPOSITIVE POWER |
| REPORTING | | -0- |
| -----------------------------------------------------------
| PERSON WITH |10| SHARED DISPOSITIVE POWER |
| | | 13,193,592 |
- ---------------------------------------------------------------------------
|11| AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | 13,193,592 |
| | |
- ---------------------------------------------------------------------------
|12| CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES | | |
| | CERTAIN SHARES --- |
| | |
- ---------------------------------------------------------------------------
|13| PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
| | 70.3% |
| | |
- ---------------------------------------------------------------------------
|14| TYPE OF REPORTING PERSON |
| | IN |
| | |
- ---------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
- ------------------------- --------------------------
|CUSIP No. 705098-10-1 | |Page 5 of 10 Pages |
- ------------------------- --------------------------
- ---------------------------------------------------------------------------
|1 | NAME OF REPORTING PERSON |
| | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON |
| | Jacob Recanati |
| | |
| | |
- ---------------------------------------------------------------------------
|2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) | | |
| | --- |
| | (b) |X| |
| | --- |
| | |
- ---------------------------------------------------------------------------
|3 | SEC USE ONLY |
| | |
| | |
- ---------------------------------------------------------------------------
|4 | SOURCE OF FUNDS |
| | Not Applicable |
| | |
- ---------------------------------------------------------------------------
|5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED | | |
| | PURSUANT TO ITEMS 2(d) or 2(e) --- |
| | |
- ---------------------------------------------------------------------------
|6 | CITIZENSHIP OR PLACE OF ORGANIZATION |
| | Israel |
| | |
- ---------------------------------------------------------------------------
| |7 | SOLE VOTING POWER |
| NUMBER OF | | -0- |
| -----------------------------------------------------------
| SHARES |8 | SHARED VOTING POWER |
|BENEFICIALLY | | 13,193,592 |
| -----------------------------------------------------------
|OWNED BY EACH |9 | SOLE DISPOSITIVE POWER |
| REPORTING | | -0- |
| -----------------------------------------------------------
| PERSON WITH |10| SHARED DISPOSITIVE POWER |
| | | 13,193,592 |
- ---------------------------------------------------------------------------
|11| AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | 13,193,592 |
| | |
- ---------------------------------------------------------------------------
|12| CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES | | |
| | CERTAIN SHARES --- |
| | |
- ---------------------------------------------------------------------------
|13| PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
| | 70.3% |
| | |
- ---------------------------------------------------------------------------
|14| TYPE OF REPORTING PERSON |
| | IN |
| | |
- ---------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
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|CUSIP No. 705098-10-1 | |Page 6 of 10 Pages |
- ------------------------- --------------------------
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|1 | NAME OF REPORTING PERSON |
| | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON |
| | Leon Recanati |
| | |
| | |
- ---------------------------------------------------------------------------
|2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) | | |
| | --- |
| | (b) |X| |
| | --- |
| | |
- ---------------------------------------------------------------------------
|3 | SEC USE ONLY |
| | |
| | |
- ---------------------------------------------------------------------------
|4 | SOURCE OF FUNDS |
| | Not Applicable |
| | |
- ---------------------------------------------------------------------------
|5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED | | |
| | PURSUANT TO ITEMS 2(d) or 2(e) --- |
| | |
- ---------------------------------------------------------------------------
|6 | CITIZENSHIP OR PLACE OF ORGANIZATION |
| | Israel |
| | |
- ---------------------------------------------------------------------------
| |7 | SOLE VOTING POWER |
| NUMBER OF | | -0- |
| -----------------------------------------------------------
| SHARES |8 | SHARED VOTING POWER |
|BENEFICIALLY | | 13,193,592 |
| -----------------------------------------------------------
|OWNED BY EACH |9 | SOLE DISPOSITIVE POWER |
| REPORTING | | -0- |
| -----------------------------------------------------------
| PERSON WITH |10| SHARED DISPOSITIVE POWER |
| | | 13,193,592 |
- ---------------------------------------------------------------------------
|11| AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | 13,193,592 |
| | |
- ---------------------------------------------------------------------------
|12| CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES | | |
| | CERTAIN SHARES --- |
| | |
- ---------------------------------------------------------------------------
|13| PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
| | 70.3% |
| | |
- ---------------------------------------------------------------------------
|14| TYPE OF REPORTING PERSON |
| | IN |
| | |
- ---------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
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|CUSIP No. 705098-10-1 | |Page 7 of 10 Pages |
- ------------------------- --------------------------
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|1 | NAME OF REPORTING PERSON |
| | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON |
| | Yudith Recanati Yovel |
| | |
| | |
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|2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) | | |
| | --- |
| | (b) |X| |
| | --- |
| | |
- ---------------------------------------------------------------------------
|3 | SEC USE ONLY |
| | |
| | |
- ---------------------------------------------------------------------------
|4 | SOURCE OF FUNDS |
| | Not Applicable |
| | |
- ---------------------------------------------------------------------------
|5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED | | |
| | PURSUANT TO ITEMS 2(d) or 2(e) --- |
| | |
- ---------------------------------------------------------------------------
|6 | CITIZENSHIP OR PLACE OF ORGANIZATION |
| | Israel |
| | |
- ---------------------------------------------------------------------------
| |7 | SOLE VOTING POWER |
| NUMBER OF | | -0- |
| -----------------------------------------------------------
| SHARES |8 | SHARED VOTING POWER |
|BENEFICIALLY | | 13,193,592 |
| -----------------------------------------------------------
|OWNED BY EACH |9 | SOLE DISPOSITIVE POWER |
| REPORTING | | -0- |
| -----------------------------------------------------------
| PERSON WITH |10| SHARED DISPOSITIVE POWER |
| | | 13,193,592 |
- ---------------------------------------------------------------------------
|11| AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | 13,193,592 |
| | |
- ---------------------------------------------------------------------------
|12| CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES | | |
| | CERTAIN SHARES --- |
| | |
- ---------------------------------------------------------------------------
|13| PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
| | 70.3% |
| | |
- ---------------------------------------------------------------------------
|14| TYPE OF REPORTING PERSON |
| | IN |
| | |
- ---------------------------------------------------------------------------
<PAGE>
Unless otherwise defined in this Amendment No. 11 to
Schedule 13D, capitalized items used in this Amendment No.
11 are defined in Amendment No. 10 to this Statement on
Schedule 13D, as previously filed.
The following amends Items 2 and 7 of this Statement on
Schedule 13D, as previously filed.
Item 2. Identity and Background.
------------------------
Pursuant to the Exchange Agreement dated as of January
4, 1994 among the Issuer, Holdings and IDB Development, on
March 24, 1994, Holdings transferred 13,193,592 Shares to
the Issuer in exchange for an identical number of Shares
issued by the Issuer. Following the exchange, Holdings
dissolved and distributed to IDB Development the newly
issued Shares, as a result of which IDB Development's
ownership of the Shares is now held directly, rather than
through Holdings. The transaction had no effect on the
number of Shares outstanding. As a result of the
transaction, the Issuer holds 13,193,592 Shares as treasury
shares.
On February 16, 1994, following a lengthy trial in the
District Court of Jerusalem, State of Israel, the four
largest banks in that country, including Israel Discount
Bank Limited ("IDBL"), and its former parent IDB Holding,
and members of their senior management were found guilty, in
connection with acts that occurred prior to October 1983, of
engaging in fraudulent securities transactions and making
false statements within the meaning of certain provisions of
that country's banking, securities and other laws. The
violations involve activities, which terminated in October
1983, relating to shares of these Israeli institutions. Mr.
Raphael Recanati who is Chairman of the Board of IDB Holding
and was chief executive officer of IDBL is among the
defendants found guilty. Mr. Recanati received a sentence
of eight months and a suspended sentence of two years, both
of which were stayed pending the outcome of an appeal
referred to below. Mr. Recanati was also fined
approximately $200,000 and IDB Holding was fined
approximately $334,000. Mr. Recanati and IDB Holding have
categorically denied any wrongdoing and are appealing to the
Supreme Court of Israel. None of the activities in question
relate to or involve the Issuer or its business in any way.
Mr. Eliahu Cohen, who is Joint Managing Director of IDB
Holding, and Mr. Oudi Recanati, who is a Director of IDB
Holding, were members of senior management of IDBL, and were
Page 8 of 10 pages
<PAGE>
also found guilty in the foregoing proceeding. Mr. Oudi Recanati
received a suspended sentence of 18 months and was fined
approximately $134,000; he has categorically denied any wrongdoing.
Mr. Cohen received a sentence of six months, a suspended sentence of
two years and was fined approximately $167,000. Mr. Cohen
has categorically denied any wrongdoing and is appealing to
the Supreme Court of Israel; his sentence has been stayed
pending the outcome of the appeal.
Except as indicated above, none of the Reporting
Persons, and none of the executive officers and directors of
IDB Holding and IDB Development, has, during the last five
years, been convicted in any criminal proceedings, excluding
traffic violations and similar misdemeanors.
Item 7. Material Filed as Exhibits.
---------------------------
1. Exchange Agreement dated as of January 4, 1994 among the
Issuer, Holdings and IDB Development, filed as Exhibit
10(i)(l) to the Issuer's Annual Report on Form 10-K for the
fiscal year ended December 31, 1993 and incorporated herein
by reference.
Page 9 of 10 pages
<PAGE>
Signature.
- ----------
After reasonable inquiry and to the best of our
knowledge and belief, the undersigned certify that the
information set forth in this amendment is true, complete
and correct.
Date: May 20, 1994
IDB Development Corporation Ltd.
IDB Holding Corporation Ltd.
Raphael Recanati
Jacob Recanati
Leon Recanati
Yudith Recanati Yovel
By: PEC Israel Economic Corporation
By: /s/ James I. Edelson
----------------------------------
James I. Edelson, Executive Vice
President of PEC Israel Economic
Corporation on behalf of IDB
Development Corporation Ltd.,
IDB Holding Corporation Ltd.,
Raphael Recanati and Jacob Recanati
pursuant to agreements annexed as
exhibits to Amendment No. 4 to the
Schedule 13D and on behalf of
Leon Recanati and Yudith
Recanati Yovel pursuant to
agreements annexed as exhibits
to Amendment No. 7 to the
Schedule 13D.
Page 10 of 10 pages
