<PAGE>
------------
OMB APPROVAL
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------
SCHEDULE 13D
(Rule 13d - 101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSANT TO 13D-1(a) AND
AMENDMENTS THERETO FILED PURSUANT TO 13D-2(a)
(AMENDMENT NO. 12 )
PEC ISRAEL ECONOMIC CORPORATION
- --------------------------------------------------------------------------------
(Name of Issuer)
COMMON STOCK ($1.00 PAR VALUE PER SHARE)
- --------------------------------------------------------------------------------
(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 25, 1998
- --------------------------------------------------------------------------------
(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 / /
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 the
disclosures provided in a prior cover page.
The information required in 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 19 pages
<PAGE>
SCHEDULE 13D
CUSIP No. 705098-10-1 Page 2 of 19 Pages
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
IDB Development Corporation Ltd
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
BK
- --------------------------------------------------------------------------------
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
-0-
NUMBER OF ------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 14,937,792
OWNED BY ------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING -0-
PERSON WITH ------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
14,937,792
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
14,937,792
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
81.35%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
CUSIP No. 705098-10-1 Page 3 of 19 Pages
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
IDB Holding Corporation Ltd.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
- --------------------------------------------------------------------------------
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
-0-
-------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES 14,937,792
BENEFICIALLY -------------------------------------------------------
OWNED BY 9 SOLE DISPOSITIVE POWER
EACH -0-
REPORTING -------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
14,937,792
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
14,937,792
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
81.35%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
CUSIP No. 705098-10-1 Page 4 of 19 Pages
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Raphael Recanati
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
- --------------------------------------------------------------------------------
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) /X/
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Israel
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
-0-
NUMBER OF ------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 14,937,792
OWNED BY ------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING -0-
PERSON WITH ------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
14,937,792
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
14,937,792
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
81.35%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
CUSIP No. 705098-10-1 Page 5 of 19 Pages
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Elaine Recanati
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
- --------------------------------------------------------------------------------
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
United States
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
-0-
NUMBER OF ------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 14,937,792
OWNED BY ------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING -0-
PERSON WITH ------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
14,937,792
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
14,937,792
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
81.35%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
CUSIP No. 705098-10-1 Page 6 of 19 Pages
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Leon Recanati
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
- --------------------------------------------------------------------------------
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
-0-
NUMBER OF ------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 14,937,792
OWNED BY ------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING -0-
PERSON WITH ------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
14,937,792
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
14,937,792
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
81.35%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
CUSIP No. 705098-10-1 Page 7 of 19 Pages
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Judith Yovel Recanati
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
- --------------------------------------------------------------------------------
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
-0-
NUMBER OF -------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 14,937,792
OWNED BY -------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING -0-
PERSON WITH -------------------------------------------------------
10 SHARED DISPOSITIVE POWER
14,937,792
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
14,937,792
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
81.35%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
Unless otherwise defined in this Amendment No. 12 to Schedule 13D,
capitalized terms used in this Amendment No. 12 are defined in Amendment No. 10
to this Statement on Schedule 13D, as previously filed.
The following amends Items 2, 3, 4, 5, 6 and 7 of this Statement on
Schedule 13D, as previously filed.
Item 2. IDENTITY AND BACKGROUND
(a), (b) and (c): In March 1997, Mr. Jacob Recanati died and ceased
to be a Reporting Person. Mr. Recanati's widow, Elaine Recanati, 57 Margalit
Street, Haifa, Israel, is hereby added as a Reporting Person. Mrs. Recanati's
principal occupation is being a housewife.
As of March 15, 1998, IDB Holding owned approximately 71.0% of the
outstanding shares of IDB Development.
Mr. Raphael Recanati and Mrs. Elaine Recanati are brother-in-law and
sister-in-law and Mr. Leon Recanati and Mrs. Judith Yovel Recanati are brother
and sister and are the nephew and niece of Mr. Raphael Recanati and Mrs. Elaine
Recanati. Companies controlled by Raphael Recanati, Elaine Recanati, Leon
Recanati and Judith Yovel Recanati together beneficially owned 52.61% of equity
and voting power of IDB Holding as of March 15, 1998. Mr. Raphael Recanati is
the Chairman of the Board of Directors of IDB Holding, IDB Development and the
Issuer. Mr. Leon Recanati's principal occupation is Joint Managing Director of
IDB Holding and Chairman of Clal (Israel) Ltd. and he is a director of IDB
Development.
The name, citizenship, residence or business address, present
principal occupation, and the name, principal business and address of each
corporation in which such occupation is conducted of each of the executive
officers and directors of IDB Holding and IDB Development are set forth on
Schedules A and B hereof and are incorporated herein by reference.
(d) None of the Reporting Persons has, during the last five years,
been convicted in any criminal proceeding, excluding traffic violations and
similar misdemeanors, except as provided below.
Page 8 of 19 pages
<PAGE>
On February 16, 1994, following a lengthy trial in the District Court
of Jerusalem, State of Israel, of 22 defendants, including IDB Holding, the four
largest Israeli banks, and members of their senior management, IDB Holding, all
the banks, including Israel Discount Bank Limited ("IDBL") of which IDB Holding
was the parent, and all the management-defendants were convicted of contravening
certain provisions of Israel's laws in connection with activities that arose out
of a program related to the regulation of bank shares prior to October 1983.
Messrs. Raphael Recanati, Eliahu Cohen and Oudi Recanati, who were among the
management-defendants, and IDB Holding categorically denied any wrongdoing and
appealed to the Supreme Court of Israel, which found that the share regulation
had been authorized and encouraged by high officials of the Israeli Government,
overturned the principal count of the indictments of the management-defendants,
and acquitted IDB Holding of all charges. The Court left standing the lower
court's finding that Messrs. Raphael Recanati and Eliahu Cohen, who were
principal executive officers of IDBL, and Mr. Oudi Recanati, who was a member of
that bank's senior management, caused improper advice to be given in connection
with the sale of securities and that Messrs. Raphael Recanati and Eliahu Cohen
caused false entries in corporate documents, in contravention of Israeli laws.
Messrs. Raphael Recanati, Eliahu Cohen and Oudi Recanati received from the lower
court suspended sentences of two years, two years and 18 months, respectively,
all of which have lapsed, and they were fined approximately $200,000, $167,000
and $134,000, respectively. None of the activities in question, which occurred
more than 14 years ago, relate to or involve the Issuer or its business in any
way.
(e) None of the Reporting Persons has, during the last five years,
been a party to a civil proceeding of a judicial or administrative body of
competent jurisdiction which as a result of such proceedings was or is subject
to a judgment, decree or final order enjoining future violations of, or
prohibiting or mandating activities subject to, Federal or state securities laws
or finding any violation with respect to such laws.
(f) Mrs. Elaine Recanati is a citizen of the United States.
Page 9 of 19 pages
<PAGE>
Item 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
On March 25, 1998, IDB Development acquired 1,744,200 Shares in
privately negotiated transactions from 15 individuals or entities at a price of
$25.50 per Share, or an aggregate amount of $44,477,100. IDB Development
purchased the 1,744,200 Shares with funds borrowed from Bank Hapoalim (the
"Bank"). The loan matures on March 19, 1999, is unsecured and bears interest at
the rate which the Bank announces from time to time as its prime lending rate,
as in effect from time to time, less 1% per annum, payable at maturity of the
loan. As of March 25, 1998, the Bank's prime lending rate was 13.7% per year.
The loan may be paid at any time without penalty.
Item 4. PURPOSE OF THE TRANSACTION
The 1,744,200 Shares acquired by IDB Development were purchased for
investment purposes. IDB Development may purchase additional Shares from time
to time in the open market, in privately negotiated transactions or otherwise at
prices and/or other terms acceptable to the Reporting Persons.
IDB Development is considering possible corporate restructuring
transactions relating to the Issuer which may involve the acquisition of the
Shares held by the Issuer's public shareholders, but no determination has been
made as to whether any such transaction will be carried out.
If the Reporting Persons believe it to be in their interest, the
Reporting Persons may sell all or any portion of the Shares.
Item 5. INTEREST IN SECURITIES OF THE ISSUER AND
Item 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR
RELATIONSHIPS WITH RESPECT TO SECURITIES
OF THE ISSUER
The Issuer has advised the Reporting Persons that there were
18,362,188 Shares outstanding on March 25, 1998. The percentages of Shares
outstanding set forth in this Amendment No. 12 are based on this number.
Page 10 of 19 pages
<PAGE>
On March 25, 1998, IDB Development purchased 1,744,200 Shares from 15
individuals or entities in privately negotiated transactions for a purchase
price of $25.50 per Share. Each seller agreed not to purchase any shares for a
period of one year.
Except for the purchase of the 1,744,200 Shares, none of the Reporting
Persons purchased or sold any Shares during the 60 day period preceding March
25, 1998.
As of March 25, 1998, IDB Development beneficially owned 14,937,792
Shares, or approximately 81.35% of the Shares. IDB Development shares the power
to vote and dispose of these Shares with IDB Holding and the Reporting Persons
who are natural persons.
As reflected on the Schedules hereto, information provided to the
Reporting Persons indicates that as of March 15, 1998, the executive officers
and directors of IDB Holding and IDB Development (other than the Reporting
Persons who are natural persons) owned an aggregate of 9,000 Shares.
Item 7. MATERIAL TO BE FILED AS EXHIBITS
Schedules A and B Name, citizenship, business address, present
principal occupation and employer of executive
officers and directors of IDB Holding and IDB
Development.
Exhibit 1 - Agreement dated March 18, 1998 between Mrs. Elaine
Recanati and the Issuer authorizing the Issuer to
file this Schedule 13D and any amendment thereto
on behalf of Mrs. Recanati.
Exhibit 2 - Summary of terms of the loan agreement between
Bank Hapoalim and IDB Development.
Page 11 of 19 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 No. 12
is true, complete and correct.
Date: March 25, 1998
IDB DEVELOPMENT CORPORATION LTD.
IDB HOLDING CORPORATION LTD.
RAPHAEL RECANATI
ELAINE RECANATI
LEON RECANATI
JUDITH YOVEL RECANATI
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. and Raphael Recanati pursuant to agreements
annexed as exhibits to Amendment No. 4 to the Schedule
13D, on behalf of Leon Recanati and Judith Yovel
Recanati pursuant to agreements annexed as exhibits to
Amendment No. 7 to the Schedule 13D and on behalf of
Elaine Recanati pursuant to an agreement annexed as
exhibit 1 to this Amendment No. 12.
Page 12 of 19 pages
<PAGE>
Schedule A
(Information provided as of March 15, 1998 in response
to Items 2 through 6 of Schedule 13D)
Executive Officers, Directors and Persons Controlling
IDB Holding Corporation Ltd. (1)
("IDBH")
The Tower, 3 Daniel Frisch Street, Tel Aviv, Israel
(citizenship the same as country of residence unless otherwise noted)
Principal
Name and Address Position Occupation
- ---------------- -------- ----------
Raphael Recanati Chairman of the Chairman of the Board and
The Tower Board and Managing Managing Director of
3 Daniel Frisch Street Director IDBH, President of Finmar
Tel Aviv, Israel Equities Co. (Shipping
and Finance) (2)
Arie Carasso Director Joint Managing Director
26 Rival Street of Moise Carasso Sons
Tel Aviv, Israel Ltd. (3)
Haym Carasso Director Joint Managing Director
26 Rival Street of Moise Carasso Sons
Tel Aviv, Israel Ltd.
Joseph Ciechanover Director President, Atidim-Etgar
12 Amirim Street Nihul Kranot B.M.
Savyon, Israel (General Partner,
Investments) and Chairman
of the Board of El Al
Israel Airlines Ltd. (4)
Eliahu Cohen Chairman of the Joint Managing Director
The Tower Executive of IDB Development (5)
3 Daniel Frisch Street Committee
Tel Aviv, Israel
Page 13 of 19 pages
<PAGE>
Principal
Name and Address Position Occupation
- ---------------- -------- ----------
William M. Davidson Director Chief Executive Officer
2300 Harmon Road of Guardian Industries
Auburn Hills, Michigan Corporation
Gideon Dover Director Director of Companies
4 Uri Street
Tel Aviv, Israel
Robert J. Hurst Director Vice Chairman of Goldman,
85 Broad Street Sachs & Co., Investment
New York, New York Bankers
Dalia Lev Director Joint Managing Director
The Tower of IDB Development
3 Daniel Frisch Street
Tel Aviv, Israel
Hermann Merkin Director Member of the New York
415 Madison Avenue Stock Exchange, Inc.
New York, New York and the American Stock
Exchange, Inc. (6)
Raphael Molho Director Director of Companies (7)
22 Ibn Gvirol Street
Jerusalem, Israel
Lenny Recanati Director Senior Manager of
14 Beth Hashoeva Lane Discount Investment
Tel Aviv, Israel Corporation Ltd.
Leon Recanati Joint Managing Joint Managing Director
The Tower Director of IDBH and Chairman of
3 Daniel Frisch Street the Board of Clal
Tel Aviv, Israel (Israel) Ltd. (8)
Oudi Recanati Joint Managing Joint Managing Director
The Tower Director of IDBH (9)
3 Daniel Frisch Street
Tel Aviv, Israel
Page 14 of 19 pages
<PAGE>
Principal
Name and Address Position Occupation
- ---------------- -------- ----------
Meir Rosenne Director Lawyer
14 Aluf Simhony Street
Jerusalem, Israel
Dov Tadmor Director Managing Director of
14 Beth Hashoeva Lane Discount Investment
Tel Aviv, Israel Corporation Ltd. (10)
Elaine Recanati Housewife
57 Margalit Street
Haifa, Israel
(citizen of the United
States)
Judith Yovel Recanati Housewife
64 Kaplan Street
Herzliya, Israel
Rina Cohen Controller Controller of IDBH (11)
The Tower
3 Daniel Frisch Street
Tel Aviv, Israel
Arthur Caplan* Secretary Secretary of IDBH (12)
The Tower
3 Daniel Frisch Street
Tel Aviv, Israel
James I. Edelson U.S. Resident Executive Vice President,
511 Fifth avenue Secretary Secretary and General
New York, New York Counsel of PEC Israel
Economic Corporation (13)
(1) As of February 28, 1998, IDB Holding Corporation Ltd., an Israeli
corporation located at The Tower, 3 Daniel Frisch Street, Tel Aviv, Israel,
owned approximately 71.0% of the outstanding shares of IDB Development
Corporation Ltd. As of such date, companies controlled by Raphael
Recanati, Elaine Recanati, Leon Recanati and Judith Yovel Recanati held in
the aggregate approximately 52.61% of the voting power and equity of IDB
Holding Corporation Ltd.
Page 15 of 19 pages
<PAGE>
(2) Mr. Raphael Recanati is Chairman and Managing Director of IDB Development
and Chairman of the Issuer.
(3) Mr. Arie Carasso is a Director of IDB Development.
(4) Mr. Ciechanover is a Director of IDB Development and the Issuer. Mr.
Ciechanover holds 2,000 shares of common stock of the Issuer.
(5) Mr. Cohen is a Director of the Issuer.
(6) Mr. Merkin is a Director of the Issuer. Mr. Merkin holds 5,000 shares of
common stock of the Issuer.
(7) Mr. Molho is a Director of IDB Development.
(8) Mr. Leon Recanati is a Director of IDB Development.
(9) Mr. Oudi Recanati is a Director of IDB Development and Vice Chairman of the
Issuer.
(10) Mr. Tadmor is a Director of IDB Development.
(11) Mrs. Cohen is Controller of IDB Development and Controller Resident in
Israel of the Issuer.
(12) Mr. Caplan is Secretary of IDB Development.
(13) Mr. Edelson holds 2,000 shares of common stock of the Issuer.
* Mr. Caplan is a dual citizen of Israel and Great Britain.
Based on information provided to the Reporting Persons, except as
disclosed in Item 2 to this Schedule 13D, none of the persons listed above has
been convicted, or is subject to a judgment, decree or final order, in any of
the legal proceedings enumerated in Items 2(d) and 2(e) of Schedule 13D.
Page 16 of 19 pages
<PAGE>
Schedule B
(Information provided as of March 15, 1998 in response
to Items 2 through 6 of Schedule 13D)
Executive Officers and Directors of IDB Development Corporation Ltd.
who are not Executive Officers or Directors of IDBH
Address is: The Tower, 3 Daniel Frisch Street, Tel Aviv, Israel
(citizenship is Israel)
Name and Address Position Principal Occupation
- ---------------- -------- --------------------
Abraham Ben Joseph Director Director of Companies
87 Haim Levanon Street
Ramat Aviv
Tel Aviv, Israel
Avishay Braverman Director President of Ben Gurion
11 Jericho Street University of the Negev
Beer Sheva, Israel
Yair Hamburger Director Chairman and Managing
29 Derech Haganim Director of
Kfar Shmaryahu, Israel Harel Hamishmar
Investments Ltd.
Michael Levi Director President, Nilit, Ltd.
Textile Fashion Ctr.
2 Kaufman Street
Tel Aviv, Israel
David Leviatan Director Director of Companies
18 Mendele Street
Herzliya, Israel
Based on information provided to the Reporting Persons, none of the persons
listed above has been convicted, or is subject to a judgment, decree or final
order, in any of the legal proceedings enumerated in Items 2(d) and 2(e) of
Schedule 13D.
Page 17 of 19 pages
<PAGE>
EXHIBIT 1
March 18, 1998
PEC Israel Economic Corporation
511 Fifth Avenue
New York, New York 10017
Gentlemen:
Pursuant to Rule 13d-1(f)(iii) promulgated under the Securities
Exchange Act of 1934, as amended, the undersigned hereby agrees that PEC Israel
Economic Corporation ("PEC") may file as necessary on behalf of the undersigned
with the Securities and Exchange Commission a Schedule 13G or a Schedule 13D and
any amendments thereto in respect of shares of common stock of PEC purchased,
owned or sold from time to time by the undersigned.
PEC is hereby authorized to file a copy of this letter as an exhibit
to said Schedule 13G or Schedule 13D or any amendments thereto.
Very truly yours,
/S/ E. RECANATI
--------------------------
Elaine Recanati
Agreed: PEC Israel Economic Corporation
By: /S/ JAMES I. EDELSON
-----------------------------
James I. Edelson,
Executive Vice President
Page 18 of 19 pages
<PAGE>
EXHIBIT 2
Summary of Terms of Loan Agreement
between Bank Hapoalim and IDB Development
1. Within the framework of a Letter of Undertaking signed by IDB
Development on October 20, 1996, on March 19, 1998, Bank Hapoalim (the "Bank")
loaned IDB Development the sum of New Israel Shekels (NIS) 165 million
(approximately $45.2 million).
2. The principal amount of the loan and interest on the loan are due in
one installment on March 19, 1999.
3. The principal amount of the loan bears interest at the rate which the
Bank announces from time to time as its prime lending rate, as in effect from
time to time, less 1% per annum. As of March 25, 1998, the Bank's prime lending
rate was 13.7% per annum.
4. The loan is not linked to any index, such as the consumer price index.
5. The loan may be prepaid without any penalty.
6. As part of the Letter of Undertaking of October 20, 1996, IDB
Development has given Bank Hapoalim an irrevocable undertaking that IDB
Development will not pledge assets in an amount more than NIS 10 million
(approximately $2.8 million) at any time for the benefit of third parties,
without the prior consent of the Bank.
Page 19 of 19 pages
