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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13E-3/A
(Amendment No. 4)
Rule 13e-3 Transaction Statement
(Pursuant to Section 13(e) of the Securities Exchange Act of 1934)
PEC ISRAEL ECONOMIC CORPORATION
(Name of the Issuer)
DISCOUNT INVESTMENT CORPORATION LTD., PEC ACQUISITION CORPORATION, PEC
ISRAEL ECONOMIC CORPORATION AND IDB DEVELOPMENT CORPORATION LTD.
(Name of Persons Filing Statement)
COMMON SHARES, $1.00 PAR VALUE 705098-10-1
(Title of Class of Securities) (Cusip Number of Class of Securities)
MR. JAMES I. EDELSON
EXECUTIVE VICE PRESIDENT, SECRETARY AND
GENERAL COUNSEL
PEC ISRAEL ECONOMIC CORPORATION
511 FIFTH AVENUE
NEW YORK, NEW YORK 10017
(212) 551-8881
(Name, address and telephone number of person authorized to receive notices
and communications on behalf of the persons filing statement.)
Copy To:
PETER G. SAMUELS, ESQ.
PROSKAUER ROSE LLP
1585 BROADWAY
NEW YORK, NEW YORK 10036-8299
(212) 969-3335
a. [x] The filing of solicitation materials or an information statement
subject to Regulation 14A [17 CFR 240.14a-1 to 240.14b-1], Regulation
14C [17 CRF 240.14c-1 to 240.14c-101] or Rule 13e-3(c) [240.13e-3 (c)]
under the Securities Exchange Act of 1934.
b. [ ] The filing of a registration statement under the Securities Act of
1933.
c. [ ] A tender offer.
d. [ ] None of the above.
Check the following box if the soliciting materials or information
statement referred to in checking box (a) are preliminary copies: [x]
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CALCULATION OF FILING FEE
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TRANSACTION AMOUNT OF
VALUATION* FILING FEE**
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<S> <C>
$124,990,454 $24,998.09
</TABLE>
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* Assumes 3,424,396 Common Shares, par value $1.00 per share, of PEC Israel
Economic Corporation (the "Common Shares") will be converted into the right
to receive $36.50 per share in cash.
** The amount of the filing fee, calculated in accordance with 240.0-11 of the
Securities Exchange Act of 1934 equals 1/50th of one percent of the
transaction value.
[x] Check box if any part of the fee is offset as provided by Rule 0-11(a)(2)
and identify the filing with which the offsetting fee was previously paid.
Identify the previous filing by registration statement number, or the Form
or Schedule, and the date of its filing.
Amount Previously Paid: $24,998.09
Form or Registration No.: Schedule 14A Information
Filing Party: PEC Israel Economic Corporation
Date Filed: September 2, 1999
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INTRODUCTION
This Schedule 13E-3 Transaction Statement is being filed by Discount
Investment Corporation Ltd., an Israeli corporation ("DIC"), PEC Acquisition
Corporation, a Maine corporation and wholly-owned subsidiary of DIC ("Merger
Sub"), PEC Israel Economic Corporation, a Maine corporation (the "Company"),
and IDB Development Corporation Ltd., an Israeli corporation ("IDB
Development") and is being filed in connection with an Agreement and Plan of
Merger, dated as of December 15, 1998, as amended ("the Merger Agreement")
among DIC, Merger Sub, and the Company.
The following cross-reference sheet is supplied pursuant to General
Instruction F to Schedule 13E-3 and shows the location in the preliminary proxy
statement filed by the Company with the Securities and Exchange Commission
contemporaneously herewith (including all annexes and schedules thereto)
("Preliminary Proxy Statement") of the information required by Schedule 13E-3 to
be included in response to the items of this Transaction Statement. The
information in the Preliminary Proxy Statement, a copy of which is attached
hereto as Exhibit (d), is incorporated by reference, and the responses to each
item are qualified in their entirety by the information contained in the
Preliminary Proxy Statement. The cross-reference sheet indicates the caption in
the Preliminary Proxy Statement under which the responses are incorporated
herein by reference. If any such item is inapplicable or the answer thereto is
in the negative and is omitted from the Preliminary Proxy Statement, it is so
indicated in the cross-reference sheet.
CROSS-REFERENCE SHEET SHOWING
LOCATION IN PRELIMINARY PROXY STATEMENT
OF INFORMATION REQUIRED BY ITEMS IN SCHEDULE 13E-3
<TABLE>
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SECTION 13E-3 ITEM LOCATION IN PRELIMINARY PROXY STATEMENT
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<S> <C>
1. Issuer and Class of Security Subject to the
Transaction
Item 1(a)...................................... Cover Page and "SUMMARY--Parties to the Merger
Agreement"
Item 1(b)...................................... Cover Page and "INTRODUCTION--Voting at the Special
Meeting and Revocation of Proxies"
Item 1(c)...................................... "SUMMARY--Market Prices and Dividends"
Item 1(d)...................................... "SUMMARY--Selected Summary Financial Information
Concerning the Company" and "SELECTED FINANCIAL
INFORMATION OF THE COMPANY"
Item 1(e)...................................... Not Applicable
Item 1(f)...................................... "TRANSACTIONS BY CERTAIN PERSONS IN
SHARES"
2. Identity and Background
Items 2(a) - (d) and (g)....................... Cover Page; "INTRODUCTION--General;" "SUMMARY
--Parties to the Merger Agreement;" "OWNERSHIP OF
SHARES;" and "MANAGEMENT OF THE COMPANY,
DIC, IDB DEVELOPMENT, IDB HOLDING, AND
MERGER SUB"
</TABLE>
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<TABLE>
<CAPTION>
SECTION 13E-3 ITEM LOCATION IN PRELIMINARY PROXY STATEMENT
------------------ ---------------------------------------
<S> <C>
Items 2(e) and (f)............................. "MANAGEMENT OF THE COMPANY, DIC, IDB
DEVELOPMENT, IDB HOLDING, AND MERGER SUB--Directors
and Executive Officers of DIC"
3. Past Contacts, Transactions or Negotiations
Item 3(a)(1)................................... "INFORMATION CONCERNING DIC AND MERGER
SUB"
Item 3(a)(2)................................... "SUMMARY--Background of the Merger" and "SPECIAL
FACTORS--Background of the Merger"
Item 3(b)(i)................................... "SUMMARY--Background of the Merger;" "SPECIAL
CONSIDERATIONS--Background of the Merger;" "--Exchange
of Company Shares between IDB Development and DIC:
Assignment of the Merger Agreement" and Exhibit (c)(2)
to this Transaction Statement
Item 3(b)(ii).................................. "SUMMARY--Litigation Related to the Merger" and
"SPECIAL FACTORS--Certain Shareholder Litigation"
4. Terms of Transaction
Item 4(a)...................................... "QUESTIONS AND ANSWERS ABOUT THE
MERGER;" "SUMMARY--Purpose and Structure of the
Merger; Reasons for the Merger;" "--Effective Time for
the Merger;" "--Appraisal Rights;" "--Conditions to the
Merger;" "--Termination of the Merger Agreement;"
"--Amending or Waiving Terms of the Merger
Agreement;" "INTRODUCTION--General;" "--Voting at
the Special Meeting and Revocation of Proxies;"
"SPECIAL FACTORS--Interests of Certain Persons in the
Merger;" "--Payment for Shares;" "--The Merger
Agreement;" "--Certain U.S. Federal Income Tax
Consequences of the Merger;" "--Rights of Dissenting
Shareholders;" and "Fees and Expenses"
Item 4(b)...................................... "SPECIAL FACTORS--Interests of Certain Persons in the
Merger"
5. Plans or Proposals of the Issuer or Affiliate
Items 5(a), (b) and (e)........................ "SUMMARY--Purpose and Structure of the Merger;
Reasons for the Merger;" "--Certain Effects of the Merger;
Plans for the Company after the Merger;" "SPECIAL
FACTORS--Purpose and Effects of the Merger; Reasons
for the Merger;" "--Plans for the Company after the
Merger;" "--Certain Effects of the Merger;" and
"FINANCING OF THE MERGER"
Item 5(c)...................................... "SPECIAL FACTORS--The Merger Agreement" and Annex A to the
Preliminary Proxy Statement
Item 5(d)...................................... "SUMMARY--Financing of the Merger;"
"FINANCING OF THE MERGER;" and Exhibit (a)(1) to this
Transaction Statement
Item 5(f)...................................... Not Applicable
Item 5(g)...................................... "SUMMARY--Purpose and Structure of the Merger;
Reasons for the Merger;" "--Certain Effects of the Merger;
Plans for the Company after the Merger;" "SPECIAL
FACTORS--Purpose and Effects of the Merger; Reasons
for the Merger;" and "--Certain Effects of the Merger"
6. Source and Amounts of Funds or Other
Consideration
</TABLE>
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<TABLE>
<CAPTION>
SECTION 13E-3 ITEM LOCATION IN PRELIMINARY PROXY STATEMENT
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<S> <C>
Item 6(a)...................................... "SUMMARY--Financing of the Merger;"
"FINANCING OF THE MERGER;" and Exhibit (a)(1) to this
Transaction Statement
Item 6(b)...................................... "SPECIAL FACTORS--Fees and Expenses" and
"FINANCING OF THE MERGER"
Items 6(c)..................................... "SUMMARY--Financing of the Merger;"
"FINANCING OF THE MERGER;" and Exhibit (a)(1) to this
Transaction Statement
Item 6(d)...................................... Not applicable
7. Purpose(s), Alternatives, Reasons and Effects
Items 7(a) and (c)............................. "QUESTIONS AND ANSWERS ABOUT THE
MERGER;" "SUMMARY--Background of the Merger;"
"--Purpose and Structure of the Merger; Reasons for the
Merger;" "SPECIAL FACTORS--Background of the
Merger;" "--Fairness of the Merger;" "--Position of DIC
and IDB Development Regarding Fairness of the Merger;"
"--Purpose and Effects of the Merger; Reasons for the
Merger;" and "--Plans for the Company after the Merger"
Item 7(b)...................................... Not Applicable
Item 7(d)...................................... "QUESTIONS AND ANSWERS ABOUT THE MERGER;"
"SUMMARY--Background of the Merger;" "--Purpose and
Structure of the Merger; Reasons for the Merger;"
"--Certain Effects of the Merger; Plans for the
Company after the Merger;" "--Accounting Treatment;"
"--Certain Federal Income Tax Consequences;" "SPECIAL
FACTORS--Background of the Merger;" "--Payment for Shares;"
"--Purpose and Effects of the Merger; Reasons for the Merger;"
"--Plans for the Company after the Merger;" "--Certain
Effects of the Merger;" "--Accounting Treatment of the
Merger;" "--The Merger Agreement;" and "--Certain U.S. Federal
Income Tax Consequences of the Merger"
8. Fairness of the Transaction
Item 8(a)...................................... "QUESTIONS AND ANSWERS ABOUT THE
MERGER;" "SPECIAL FACTORS-- Recommendation of the
Special Committee and the Company Board;" "--Fairness
of the Merger;" and "--Position of DIC and IDB
Development Regarding Fairness of the Merger"
Item 8(b)...................................... "QUESTIONS AND ANSWERS ABOUT THE
MERGER;" "SUMMARY--Background of the Merger;"
"--Purpose and Structure of the Merger; Reasons for the
Merger;" "--The Fairness Opinion of the Financial
Advisor;" "--Special Considerations;" "SPECIAL FACTORS
--Background of the Merger;" "--Fairness of the Merger;"
"--Position of DIC and IDB Development Regarding Fairness
of the Merger;" and "--Purpose and Effects of the Merger;
Reasons for the Merger"
Item 8(c)...................................... "QUESTIONS AND ANSWERS ABOUT THE
MERGER;" "INTRODUCTION--General;" and "SPECIAL FACTORS--
Fairness of the Merger"
</TABLE>
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<TABLE>
<CAPTION>
SECTION 13E-3 ITEM LOCATION IN PRELIMINARY PROXY STATEMENT
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<S> <C>
Item 8(d)...................................... "SUMMARY--Background of the Merger;" "--The
Fairness Opinion of the Financial Advisor;" "SPECIAL
FACTORS--Background of the Merger;" and "--Opinion
of Merrill Lynch"
Item 8(e)...................................... "QUESTIONS AND ANSWERS ABOUT THE
MERGER;" "SPECIAL FACTORS--Recommendation of
the Special Committee and the Company Board;" and
"--Interests of Certain Persons in the Merger"
Item 8(f)...................................... Not Applicable
9. Reports, Opinions, Appraisals and Certain
Negotiations
Items 9(a) and (b)............................. "SUMMARY--Background of the Merger;" "--The Fairness
Opinion of the Financial Advisor;" "--Special Considerations;"
"SPECIAL FACTORS--Background of the Merger;" "--Exchange
of Company Shares between IDB Development and DIC;
Assignment of the Merger Agreement;" "--Fairness of the
Merger;" "--Opinion of Merrill Lynch;" "--Deutsche Bank,
Financial Advisor to DIC;" and Exhibits (b)(1)-(9),
to this Transaction Statement
Item 9(c)...................................... "SPECIAL FACTORS--Exchange of Company Shares between
IDB Development and DIC; Assignment of the Merger
Agreement;" "--Opinion of Merrill Lynch;" and "--Deutsche
Bank, Financial Advisor to DIC"
10. Interest in Securities of the Issuer
Item 10(a)..................................... "INTRODUCTION--General;" "SPECIAL FACTORS
--Interests of Certain Persons in the Merger;" and
"OWNERSHIP OF SHARES"
Item 10(b)..................................... Not Applicable
11. Contracts, Arrangements or Understandings
with Respect to the Issuer's Securities........ "QUESTIONS AND ANSWERS ABOUT THE
MERGER;" "SUMMARY--Parties to the Merger
Agreement;" "--Background of the Merger;" "--Purpose
and Structure of the Merger; Reasons for the Merger;"
"--The Fairness Opinion of the Financial Advisor;"
"--Conditions to the Merger;" "--Termination of the
Merger Agreement;" "--Amending or Waiving Terms of the
Merger Agreement;" "SPECIAL FACTORS--Background of the
Merger;" "--Exchange of Company Shares between
IDB Development and DIC; Assignment of the Merger
Agreement;" "--Interests of Certain Persons in the
Merger;" "--The Merger Agreement;" Annex A to the
Preliminary Proxy Statement; and Exhibit (c)(2) to this
Transaction Statement
12. Present Intention and Recommendation of
Certain Persons with Regard to the Transaction
</TABLE>
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<TABLE>
<CAPTION>
SECTION 13E-3 ITEM LOCATION IN PRELIMINARY PROXY STATEMENT
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Item 12(a)..................................... "QUESTIONS AND ANSWERS ABOUT THE MERGER;" "INTRODUCTION--
General;" and "SPECIAL FACTORS--The Merger Agreement"
Item 12(b)..................................... "QUESTIONS AND ANSWERS ABOUT THE MERGER;" "INTRODUCTION--
General;" "SPECIAL FACTORS--Recommendation of the Special
Committee and the Company Board;" "--Fairness of the
Merger;" and "--Position of DIC and IDB Development Regarding
Fairness of the Merger"
13. Other Provisions of the Transaction
Item 13(a)..................................... "QUESTIONS AND ANSWERS ABOUT THE
MERGER;" "SUMMARY--Appraisal Rights;" "SPECIAL
FACTORS--The Merger Agreement;" "--The Rights of
Dissenting Shareholders;" and Annex B to the Preliminary
Proxy Statement
Items 13(b) and (c)............................ Not Applicable
14. Financial Information
Item 14(a)..................................... "SUMMARY--Selected Summary Financial Information
Concerning the Company;" "SELECTED FINANCIAL
INFORMATION OF THE COMPANY;"
"INCORPORATION OF CERTAIN DOCUMENTS BY
REFERENCE;" and Exhibits (g)(1) and (g)(2) to this
Transaction Statement
Item 14(b)..................................... Not Applicable
15. Persons and Assets Employed, Retained or
Utilized
Item 15(a)..................................... "INTRODUCTION--Voting at the Special Meeting and
Revocation of Proxies;" "SPECIAL FACTORS--Plans for
the Company after the Merger;" "--The Merger
Agreement;" "FINANCING OF THE MERGER;" and Annex A to
the Preliminary Proxy Statement
Item 15(b)..................................... "SUMMARY--Background of the Merger;" "--The
Fairness Opinion of the Financial Advisor;" "SPECIAL
FACTORS--Background of the Merger;" "--Opinion of
Merrill Lynch;" and "--Fees and Expenses"
16. Additional Information......................... Preliminary Proxy Statement in its entirety
17. Material to be Filed as Exhibits............... Separately filed with this Schedule 13E-3
</TABLE>
ITEM 1. ISSUER AND CLASS OF SECURITY SUBJECT TO THE TRANSACTION.
(a) The name of the issuer of the class of equity security subject to the
Rule 13e-3 transaction is PEC Israel Economic Corporation and the address of its
principal executive offices is 511 Fifth Avenue, New York, New York 10017. The
relevant information set forth on the Cover Page of the Preliminary Proxy
Statement and under the caption "SUMMARY--Parties to the Merger Agreement" is
incorporated herein by reference.
(b) The relevant information set forth on the Cover Page of the Preliminary
Proxy Statement and under the caption "INTRODUCTION--Voting at the Special
Meeting and Revocation of Proxies" is incorporated herein by reference.
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(c) The relevant information set forth under the caption "SUMMARY--Market
Prices and Dividends" is incorporated herein by reference.
(d) The relevant information set forth under the captions
"SUMMARY--Selected Summary Financial Information Concerning the Company" and
"SELECTED FINANCIAL INFORMATION OF THE COMPANY" is incorporated herein by
reference.
(e) Not Applicable.
(f) The relevant information set forth under the caption "TRANSACTIONS BY
CERTAIN PERSONS IN SHARES" is incorporated herein by reference.
ITEM 2. IDENTITY AND BACKGROUND.
(a) - (d) and (g). This Transaction Statement is being filed by DIC,
Merger Sub, IDB Development, and the Company (the Company being the issuer).
The relevant information set forth on the Cover Page of the Preliminary
Proxy Statement and under the captions "INTRODUCTION--General,"
"SUMMARY--Parties to the Merger Agreement," "OWNERSHIP OF SHARES," and
"MANAGEMENT OF THE COMPANY, DIC, IDB DEVELOPMENT, IDB HOLDING, AND MERGER
SUB" is incorporated herein by reference.
(e) and (f) The relevant information set forth under the caption
"MANAGEMENT OF THE COMPANY, DIC, IDB DEVELOPMENT, IDB HOLDING, AND MERGER SUB
- --Directors and Executive Officers of DIC" is incorporated herein by reference.
ITEM 3. PAST CONTACTS, TRANSACTIONS OR NEGOTIATIONS.
(a)(1). The relevant information set forth under the caption "INFORMATION
CONCERNING DIC AND MERGER SUB" is incorporated herein by reference.
(a)(2). The relevant information set forth under the captions "SUMMARY--
Background of the Merger" and "SPECIAL FACTORS--Background of the Merger" is
incorporated herein by reference.
(b)(i). The relevant information set forth under the captions "SUMMARY--
Background of the Merger," "SPECIAL FACTORS--Background of the Merger,"
"--Exchange of Company Shares between IDB Development and DIC; Assignment of the
Merger Agreement," and in Exhibit (c)(2) to this Transaction Statement is
incorporated herein by reference.
(b)(ii). The relevant information set forth under the captions
"SUMMARY--Litigation Related to the Merger" and "SPECIAL FACTORS--Certain
Shareholders Litigation" is incorporated herein by reference.
ITEM 4. TERMS OF THE TRANSACTION.
(a) The relevant information set forth under the captions "QUESTIONS AND
ANSWERS ABOUT THE MERGER," "SUMMARY--Purpose and Structure of the Merger;
Reasons for the Merger," "--Effective Time for the Merger," "--Appraisal
Rights," "--Conditions to the Merger," "--Termination of the Merger Agreement,"
"--Amending or Waiving Terms of the Merger Agreement," "INTRODUCTION--General,"
"--Voting at the Special Meeting and Revocation of Proxies," "SPECIAL
FACTORS--Interests of Certain Persons in the Merger,"
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"--Payment for Shares," "--The Merger Agreement," "--Certain U.S. Federal Income
Tax Consequences of the Merger," "--Rights of Dissenting Shareholders,"
and "--Fees and Expenses" is incorporated herein by reference.
(b) The relevant information set forth under the caption "SPECIAL
FACTORS--Interests of Certain Persons in the Merger" is incorporated herein by
reference.
ITEM 5. PLANS OR PROPOSALS OF THE ISSUER OR AFFILIATE.
(a), (b) and (e). The relevant information set forth under the captions
"SUMMARY--Purpose and Structure of the Merger; Reasons for the Merger,"
"--Certain Effects of the Merger; Plans for the Company after the Merger,"
"SPECIAL FACTORS--Purpose and Effects of the Merger; Reasons for the Merger,"
"--Plans for the Company after the Merger," "--Certain Effects of the Merger,"
and "FINANCING OF THE MERGER" is incorporated herein by reference.
(c) The relevant information set forth under the caption "SPECIAL
FACTORS--The Merger Agreement" and in Annex A to the Preliminary Proxy Statement
is incorporated herein by reference.
(d) The relevant information set forth under the captions
"SUMMARY--Financing of the Merger," "FINANCING OF THE MERGER," and in
Exhibit (a)(1) is incorporated herein by reference.
(f) Not Applicable.
(g) The relevant information set forth under the captions "SUMMARY--Purpose
and Structure of the Merger; Reasons for the Merger," "--Certain Effects of the
Merger; Plans for the Company after the Merger," "SPECIAL FACTORS--Purpose and
Effects of the Merger; Reasons for the Merger," and "--Certain Effects of the
Merger" is incorporated herein by reference.
ITEM 6. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
(a) The relevant information set forth under the captions
"SUMMARY--Financing of the Merger," "FINANCING OF THE MERGER," and in Exhibit
(a)(1) is incorporated herein by reference.
(b) The relevant information set forth under the captions "SPECIAL
FACTORS--Fees and Expenses" and "FINANCING OF THE MERGER" is incorporated
herein by reference.
(c) The relevant information set forth under the captions
"SUMMARY--Financing of the Merger," "FINANCING OF THE MERGER," and in Exhibit
(a)(1) is incorporated herein by reference.
(d) Not applicable.
ITEM 7. PURPOSE(S), ALTERNATIVES, REASONS AND EFFECTS.
(a) and (c). The relevant information set forth under the captions
"QUESTIONS AND ANSWERS ABOUT THE MERGER," "SUMMARY--Background of the Merger,"
"--Purpose and Structure of the Merger; Reasons for the Merger," "SPECIAL
FACTORS--Background of the Merger," "--Fairness of the Merger," "--Position of
DIC and IDB Development Regarding Fairness of the Merger," "--Purpose and
Effects of the Merger; Reasons for the Merger," and "--Plans for the
Company after the Merger" is incorporated herein by reference.
(b) Not Applicable.
(d) The relevant information set forth under the captions "QUESTIONS AND
ANSWERS ABOUT THE MERGER," "SUMMARY--Background of the Merger," "--Purpose and
Structure of the Merger; Reasons for the
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Merger," "--Certain Effects of the Merger; Plans for the Company after the
Merger," "--Accounting Treatment," "--Certain Federal Income Tax
Consequences," "SPECIAL FACTORS--Background of the Merger," "--Payment for
Shares," "--Purpose and Effects of the Merger; Reasons for the Merger,"
"--Plans for the Company after the Merger," "--Certain Effects of the
Merger," "--Accounting Treatment of the Merger," "--the Merger Agreement,"
and "--Certain U.S. Federal Income Tax Consequences of the Merger" is
incorporated herein by reference.
ITEM 8. FAIRNESS OF THE TRANSACTION.
(a) The relevant information set forth under the captions "QUESTIONS AND
ANSWERS ABOUT THE MERGER," "SPECIAL FACTORS--Recommendation of the Special
Committee and the Company Board," "--Fairness of the Merger," and "--Position of
DIC and IDB Development Regarding Fairness of the Merger" is incorporated herein
by reference.
(b) The relevant information set forth under the captions "QUESTIONS AND
ANSWERS ABOUT THE MERGER," "SUMMARY--Background of the Merger," "--Purpose
and Structure of the Merger; Reasons for the Merger," "--The Fairness Opinion
of the Financial Advisor," "--Special Considerations," "SPECIAL
FACTORS--Background of the Merger," "--Fairness of the Merger," "--Position
of DIC and IDB Development Regarding Fairness of the Merger," and "--Purpose
and Effects of the Merger; Reasons for the Merger" is incorporated herein by
reference.
(c) The relevant information set forth under the captions "QUESTIONS AND
ANSWERS ABOUT THE MERGER," "INTRODUCTION--General," and "SPECIAL FACTORS--
Fairness of the Merger" is incorporated herein by reference.
(d) The relevant information set forth under the caption
"SUMMARY--Background of the Merger," "--The Fairness Opinion of the Financial
Advisor," "SPECIAL FACTORS--Background of the Merger," and "--Opinion of Merrill
Lynch" is incorporated herein by reference.
(e) The relevant information set forth under the captions "QUESTIONS AND
ANSWERS ABOUT THE MERGER," "SPECIAL FACTORS--Recommendation of the Special
Committee and the Company Board," and "--Interests of Certain Persons in the
Merger" is incorporated herein by reference.
(f) Not Applicable.
ITEM 9. REPORTS, OPINIONS, APPRAISALS AND CERTAIN NEGOTIATIONS.
(a) and (b). The relevant information set forth under the captions
"SUMMARY--Background of the Merger," "--The Fairness Opinion of the Financial
Advisor," "--Special Considerations," "SPECIAL FACTORS--Background of the
Merger," "--Exchange of Company Shares between IDB Development and DIC;
Assignment of the Merger Agreement;" "--Fairness of the Merger," "--Opinion
of Merrill Lynch," "--Deutsche Bank, Financial Advisor to DIC," and in
Exhibits (b)(1)-(9) to this Transaction Statement is incorporated herein by
reference.
(c) The relevant information set forth under the captions "SPECIAL
FACTORS--Exchange of Company Shares between IDB Development and DIC;
Assignment of the Merger Agreement;" "--Opinion of Merrill Lynch," and
"--Deutsche Bank, Financial Advisor to DIC" is incorporated
herein by reference.
ITEM 10. INTEREST IN SECURITIES OF THE ISSUER.
(a) The relevant information set forth under the captions
"INTRODUCTION--General," "SPECIAL FACTORS--Interests of Certain Persons in
the Merger," and "OWNERSHIP OF SHARES" is incorporated herein by reference.
(b) Not Applicable.
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ITEM 11. CONTRACTS, ARRANGEMENTS OR UNDERSTANDINGS WITH RESPECT TO THE
ISSUER'S SECURITIES.
The relevant information set forth under the captions "QUESTIONS AND
ANSWERS ABOUT THE MERGER," "SUMMARY--Parties to the Merger Agreement,"
"--Background of the Merger," "--Purpose and Structure of the Merger; Reasons
for the Merger," "--The Fairness Opinion of the Financial Advisor,"
"--Conditions to the Merger," "--Termination of the Merger Agreement,"
"--Amending or Waiving Terms of the Merger Agreement," "SPECIAL
FACTORS--Background of the Merger," "--Exchange of Company Shares between
IDB Development and DIC; Assignment of the Merger Agreement," "--Interests of
Certain Persons in the Merger," "--The Merger Agreement," in Annex A to the
Preliminary Proxy Statement and in Exhibit (c)(2) to this Transaction
Statement is incorporated herein by reference.
ITEM 12. PRESENT INTENTION AND RECOMMENDATION OF CERTAIN PERSONS WITH
REGARD TO THE TRANSACTION.
(a) The relevant information set forth under the captions "QUESTIONS AND
ANSWERS ABOUT THE MERGER," "INTRODUCTION--General" and "SPECIAL FACTORS--the
Merger Agreement" is incorporated herein by reference.
(b) The relevant information set forth under the captions "QUESTIONS AND
ANSWERS ABOUT THE MERGER," "INTRODUCTION--General," "SPECIAL
FACTORS--Recommendation of the Special Committee and the Company Board,"
"--Fairness of the Merger," and "--Position of DIC and IDB Development
Regarding Fairness of the Merger" is incorporated herein by reference.
ITEM 13. OTHER PROVISIONS OF THE TRANSACTION.
(a) The relevant information set forth under the captions "QUESTIONS AND
ANSWERS ABOUT THE MERGER," "SUMMARY--Appraisal Rights," "SPECIAL FACTORS--The
Merger Agreement," "--The Rights of Dissenting Shareholders," and in Annex B to
the Preliminary Proxy Statement is incorporated herein by reference.
(b) and (c). Not Applicable.
ITEM 14. FINANCIAL INFORMATION.
(a) The relevant information set forth under the captions
"SUMMARY--Selected Summary Financial Information Concerning the Company,"
"SELECTED FINANCIAL INFORMATION OF THE COMPANY," "INCORPORATION OF CERTAIN
DOCUMENTS BY REFERENCE," and in Exhibits (g)(1) and (g)(2) to this
Transaction Statement is incorporated herein by reference. Pursuant to
Instruction D and Instruction F to Schedule 13E-3, the "Consolidated
Financial Statements" from the Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 1998, as amended, and the "Unaudited Financial
Statements" from the Company's Quarterly Report on Form 10-Q for the period
ended June 30, 1999 (copies of which are filed as Exhibits (g)(1) and (g)(2),
respectively, to this Transaction Statement) are incorporated herein by
reference.
(b) Not Applicable.
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ITEM 15. PERSONS AND ASSETS EMPLOYED, RETAINED OR UTILIZED.
(a) The relevant information set forth under the captions
"INTRODUCTION--Voting at the Special Meeting and Revocation of Proxies,"
"SPECIAL FACTORS--Plans for the Company after the Merger," "--The Merger
Agreement," "FINANCING OF THE MERGER," and in Annex A to the Preliminary Proxy
Statement is incorporated herein by reference.
(b) The relevant information set forth under the captions
"SUMMARY--Background of the Merger," "--The Fairness Opinion of the Financial
Advisor," "SPECIAL FACTORS--Background of the Merger," "--Opinion of Merrill
Lynch," and "--Fees and Expenses" is incorporated herein by reference.
ITEM 16. ADDITIONAL INFORMATION.
The information set forth in the Preliminary Proxy Statement is
incorporated herein by reference in its entirety.
ITEM 17. MATERIAL TO BE FILED AS EXHIBITS.
<TABLE>
<CAPTION>
EXHIBIT NUMBER DESCRIPTION
-------------- -----------
<S> <C>
(a)(1) --Form of Loan Agreement dated September __, 1999 between Bank
Leumi and PEC Acquisition Corporation (to be filed
by amendment).
(b)(1) --Fairness Opinion of Merrill Lynch International dated December 16,
1998 (incorporated by reference to Schedule 13E-3/A
(Amendment No. 3)).
(b)(2) --Presentation materials regarding Project Alpha provided to
the Special Committee of the Board of Directors of the
Company by Merrill Lynch International dated December
11, 1998 (incorporated by reference to Schedule 13E-3/A
(Amendment No. 3)).
(b)(3) --Fairness Opinion of A.O. Adav Financial Consultants Ltd.
dated December 15, 1998 (incorporated by reference to
Schedule 13E-3/A (Amendment No. 3)).
(b)(4) --Presentation materials regarding Project Alpha provided to
the Board of Directors by BT Wolfensohn dated December 15, 1998
(incorporated by reference to Schedule 13E-3/A (Amendment No. 3)).
(b)(5) --Valuation of the Number of Shares of Discount Investment
Corporation which will be issued to IDB Development
Corporation Ltd. in consideration for 14,937,792 Shares of
$1 par value of PEC - Israel Economic Corporation by Itzhak
Swary Ltd. dated October 15, 1998 (incorporated by reference to
Schedule 13E-3/A (Amendment No. 3)).
(b)(6) --Fairness Opinions of GIZA Economic Consulting and Financial
Management (1988) Ltd. dated October 15, 1998 and December 15,
1998 (incorporated by reference to Schedule 13E-3/A
(Amendment No. 3)).
(b)(7) --Presentation materials regarding Project Alpha provided to
DIC by Deutsche Banc Alex.Brown dated August, 1999.
(b)(8) --Fairness opinion of Merrill Lynch International dated August 20,
1999 (incorporated by reference to Annex C of the Preliminary
Proxy Statement).
(b)(9) --Presentation materials regarding Project Alpha provided to the
Special Committee of the Board of Directors of the Company by
Merrill Lynch International dated August 18, 1999.
(c)(1) --Agreement and Plan of Merger dated as of December 15,
1998, as amended, among Discount Investment Corporation Ltd.,
PEC Acquisition Corporation, and PEC Israel Economic
Corporation (incorporated by reference to Annex A to the
Preliminary Proxy Statement).
(c)(2) --Assignment of Rights and Obligations in connection with the Merger
Agreement from IDB Development to DIC dated January 7, 1999.
(d) --The Preliminary Proxy Statement (incorporated by reference
to the Preliminary Proxy Statement).
(e) --Dissenters' Rights (incorporated by reference to Annex B to
the Preliminary Proxy Statement).
(f) --Not applicable
(g)(1) --Consolidated Financial Statements (incorporated by
reference to the Company's Annual Report on Form 10-K
for the fiscal year ended December 31, 1998, as amended).
(g)(2) --Unaudited Financial Statements (incorporated by reference to
the Company's Quarterly Report on Form 10-Q for the period
ended June 30, 1999).
</TABLE>
12
<PAGE>
After due inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this Transaction Statement is true, complete
and correct.
DISCOUNT INVESTMENT CORPORATION LTD.
By: /s/ Yoram Turbowicz
--------------------------------
Title: President and Chief
Executive Officer
Date: September 2, 1999
After due inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this Transaction Statement is true, complete
and correct.
PEC ACQUISITION CORPORATION
By: /s/ Yoram Turbowicz
--------------------------------
Title: President and Chairman
of the Board
Date: September 2, 1999
After due inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this Transaction Statement is true, complete
and correct.
PEC ISRAEL ECONOMIC CORPORATION
By: /s/ Frank Klein
--------------------------------
Title: President
Date: September 2, 1999
After due inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this Transaction Statement is true, complete
and correct.
IDB DEVELOPMENT CORPORATION LTD.
By: /s/ Eliau Cohen
--------------------------------
Title: Co-Chief Executive
Officer
By: /s/ Arthur Caplan
--------------------------------
Title: Corporate Secretary
Date: September 2, 1999
13
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT NUMBER DESCRIPTION
-------------- -----------
<S> <C>
(a)(1) --Form of Loan Agreement dated September __, 1999 between Bank
Leumi and PEC Acquisition Corporation (to be filed
by amendment).
(b)(1) --Fairness Opinion of Merrill Lynch International dated December 16,
1998 (incorporated by reference to Schedule 13E-3/A
(Amendment No. 3)).
(b)(2) --Presentation materials regarding Project Alpha provided to
the Special Committee of the Board of Directors of the
Company by Merrill Lynch International dated December
11, 1998 (incorporated by reference to Schedule 13E-3/A
(Amendment No. 3)).
(b)(3) --Fairness Opinion of A.O. Adav Financial Consultants Ltd.
dated December 15, 1998 (incorporated by reference to
Schedule 13E-3/A (Amendment No. 3)).
(b)(4) --Presentation materials regarding Project Alpha provided to
the Board of Directors by BT Wolfensohn dated December 15, 1998
(incorporated by reference to Schedule 13E-3/A (Amendment No. 3)).
(b)(5) --Valuation of the Number of Shares of Discount Investment
Corporation which will be issued to IDB Development
Corporation Ltd. in consideration for 14,937,792 Shares of
$1 par value of PEC - Israel Economic Corporation by Itzhak
Swary Ltd. dated October 15, 1998 (incorporated by reference to
Schedule 13E-3/A (Amendment No. 3)).
(b)(6) --Fairness Opinions of GIZA Economic Consulting and Financial
Management (1988) Ltd. dated October 15, 1998 and December 15,
1998 (incorporated by reference to Schedule 13E-3/A
(Amendment No. 3)).
(b)(7) --Presentation materials regarding Project Alpha provided to
DIC by Deutsche Banc Alex.Brown dated August, 1999.
(b)(8) --Fairness opinion of Merrill Lynch International dated August 20,
1999 (incorporated by reference to Annex C of the Preliminary
Proxy Statement).
(b)(9) --Presentation materials regarding Project Alpha provided to the
Special Committee of the Board of Directors of the Company by
Merrill Lynch International dated August 18, 1999.
(c)(1) --Agreement and Plan of Merger dated as of December 15,
1998, as amended, among Discount Investment Corporation Ltd.,
PEC Acquisition Corporation, and PEC Israel Economic
Corporation (incorporated by reference to Annex A to the
Preliminary Proxy Statement).
(c)(2) --Assignment of Rights and Obligations in connection with the Merger
Agreement from IDB Development to DIC dated January 7, 1999.
(d) --The Preliminary Proxy Statement (incorporated by reference
to the Preliminary Proxy Statement).
(e) --Dissenters' Rights (incorporated by reference to Annex B to
the Preliminary Proxy Statement).
(f) --Not applicable
(g)(1) --Consolidated Financial Statements (incorporated by
reference to the Company's Annual Report on Form 10-K
for the fiscal year ended December 31, 1998, as amended).
(g)(2) --Unaudited Financial Statements (incorporated by reference to
the Company's Quarterly Report on Form 10-Q for the period
ended June 30, 1999).
</TABLE>
14
<PAGE>
Exhibit 99(b)(7)
Strictly private & confidential
- --------------------------------------------------------------------------------
[LOGO] DISCOUNT INVESTMENT CORPORATION LTD.
Project Alpha
Review of final offer for PEC Israel Economic Corporation
August 1999
Deutsche Banc Alex. Brown
Deutsche Bank |/|
<PAGE>
[LOGO] ------------------------------------------------------------------------
These materials were prepared by Deutsche Banc Alex. Brown based on publicly
available information and information supplied by PEC Israel Economic
Corporation ("PEC") and Professor Swary, without independent verification by
Deutsche Banc Alex. Brown. These materials are subject to further due diligence
and do not constitute a specific transaction recommendation or an opinion as to
valuation or otherwise, and should not be relied upon as the basis for any
investment decision. No representation or warranty (express or implied) is made
by Deutsche Banc Alex. Brown as to the accuracy or completeness of the
information herein. The materials are intended solely for review by the client
and are not for publication or distribution to any other parties.
Deutsche Banc Alex. Brown
Deutsche Bank |/|
<PAGE>
[LOGO] ------------------------------------------------------------------------
Contents
Section
1 Executive summary 1
2 Offer analysis 3
3 Precedent going private premiums 5
4 Indications of PEC valuation 8
Appendix
I PEC trading history
II Holding company discounts
Deutsche Banc Alex. Brown
Deutsche Bank |/|
<PAGE>
Executive summary Section 1
[LOGO] ------------------------------------------------------------------------
Section 1
Executive summary
Deutsche Banc Alex. Brown 1
Deutsche Bank |/|
<PAGE>
Executive summary Section 1
[LOGO] ------------------------------------------------------------------------
Executive summary
o The negotiations between Discount Investment Corporation ("DIC") and the
Special Committee of PEC resulted in an agreement to buy out the minority
shareholders of PEC at a revised price of $36.50 per share, payable in
cash.
o This price represents a 60.0 percent premium over the PEC stock price on
September 4, 1998, prior to the initial offer announcement, and a 43.1
percent premium over the initial offer price of $25.50.
o The transaction is pending requisite shareholder approvals.
o The objectives of this presentation include:
- review of the premium implied by the agreed to $36.50 per share
revised price
- comparison of premium to precedent market benchmarks
Deutsche Banc Alex. Brown 2
Deutsche Bank |/|
<PAGE>
Offer analysis Section 2
[LOGO] ------------------------------------------------------------------------
Section 2
Offer analysis
Deutsche Banc Alex. Brown 3
Deutsche Bank |/|
<PAGE>
Offer analysis Section 2
[LOGO] ------------------------------------------------------------------------
Offer analysis
<TABLE>
<CAPTION>
PEC Initial offer December offer Final offer
stock price at $25.50 at $30.00 at $36.50
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Date of offer September 6, 1998 December 8, 1998 August 18, 1999
Premium of offer over:
1 day prior to announcement (September 4, 1998) $22.8125 11.8% 31.5% 60.0%
1 week prior to announcement (August 28, 1998) 23.8125 7.1 26.0 53.3
4 weeks prior to announcement (August 7, 1998) 25.0625 1.7 19.7 45.6
</TABLE>
Note: Final offer of $36.50 per share represents a 43.1 percent increase over
the initial offer of $25.50.
Deutsche Banc Alex. Brown 4
Deutsche Bank |/|
<PAGE>
Precedent going private premiums Section 3
[LOGO] ------------------------------------------------------------------------
Section 3
Precedent going private premiums
Deutsche Banc Alex. Brown 5
Deutsche Bank |/|
<PAGE>
Precedent going private premiums Section 3
[LOGO] ------------------------------------------------------------------------
Precedent going private premiums
Deutsche Banc Alex. Brown reviewed transactions completed in the US since 1990,
with deal value greater than $100 million, where the acquiror held at least a 51
percent ownership position in the target.
All observations - final offer premiums
- --------------------------------------------------------------------------------
Final offer premium to:
--------------------------------------------- % increase of
Announcement date: final transaction
--------------------------------------------- price since
1 day prior 1 week prior 4 weeks prior Initial offer
Mean 18.6% 25.6% 25.7% 8.5%
Median 15.6 18.8 23.6 4.5
High 60.3% 78.8% 78.8% 31.3%
Low (0.8) 2.3 (3.6) 0.0
Four of the transactions had public float below 25 percent
25% or less float precedents - final offer premiums
- --------------------------------------------------------------------------------
Final offer premium to:
--------------------------------------------- % increase of
Announcement date: final transaction
--------------------------------------------- price since
1 day prior 1 week prior 4 weeks prior Initial offer
Mean 6.0% 7.3% 6.8% 5.9%
Median 5.3 7.3 1.1 5.5
High 13.3% 12.5% 28.6% 12.6%
Low 2.0 2.3 (3.6) 0.0
Deutsche Banc Alex. Brown 6
Deutsche Bank |/|
<PAGE>
Precedent going private premiums Section 3
[LOGO] ------------------------------------------------------------------------
Precedent going private premiums (continued)
In a recent Israeli going private transaction, Koor agreed to pay $36.375 per
share for the 34 percent of Tadiran it did not already own. The offer
represented a 38.6 percent premium to Tadiran's unaffected stock price one day
prior to the initial offer
<TABLE>
<CAPTION>
Tadiran Initial offer Final offer
stock price at $31.150 at $36.375
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Date of offer October 25, 1998 November 19, 1998
Premium of offer over:
1 day prior to announcement (October 23, 1998) $26.2500 18.7% 38.6%
1 week prior to announcement (October 16, 1998) 24.6875 26.2 47.3
4 weeks prior to announcement (September 25, 1998) 29.0000 7.4 25.4
</TABLE>
Deutsche Banc Alex. Brown 7
Deutsche Bank |/|
<PAGE>
Indications of PEC valuation Section 4
[LOGO] ------------------------------------------------------------------------
Section 4
Indications of PEC valuation
Deutsche Banc Alex. Brown 8
Deutsche Bank |/|
<PAGE>
Indications of PEC valuation Section 4
[LOGO] ------------------------------------------------------------------------
Indications of PEC valuation
Utilizing Professor Swary's valuation report, marking PEC's public company
holdings to market as of August 18, 1999 and adjusting for other market
movements, yields the following indications of value per PEC share(1) across
various tax rates and holding company discounts
At tax rates of:
At holding company --------------------------------------------
discounts of: 25% 35%
- --------------------------------------------------------------------------------
25% $37.58 - $39.49 $33.77 - $35.43
30% 35.07 - 36.86 31.52 - 33.07
Value Range $31.52 - $39.49
(1) 18.362 million fully-diluted PEC shares outstanding.
Deutsche Banc Alex. Brown 9
Deutsche Bank |/|
<PAGE>
PEC trading history Appendix I
[LOGO] ------------------------------------------------------------------------
Appendix I
PEC trading history
Deutsche Banc Alex. Brown
Deutsche Bank |/|
<PAGE>
PEC trading history Appendix I
[LOGO] ------------------------------------------------------------------------
PEC historical trading levels
Since January 1, 1996, PEC shares have traded as high as $33.188 on 6/21/99, and
as low as $14.625 on 11/08/96, with an average daily trading volume of 9,695
shares
[GRAPHIC OMITTED]
Deutsche Banc Alex. Brown
Deutsche Bank |/|
<PAGE>
PEC trading history Appendix I
[LOGO] ------------------------------------------------------------------------
Stock price performances: DIC vs. PEC
[GRAPHIC OMITTED]
Deutsche Banc Alex. Brown
Deutsche Bank |/|
<PAGE>
Holding company discounts Appendix II
[LOGO] ------------------------------------------------------------------------
Appendix II
Holding company discounts
Deutsche Banc Alex. Brown
Deutsche Bank |/|
<PAGE>
Holding company discounts Appendix II
[LOGO] ------------------------------------------------------------------------
PEC historical discounts(1)
Since April 1997, independent third party research analysts have estimated PEC's
discount to its after-tax NAV from approximately 30 percent to 51 percent
Discount to NAV
Estimated Share ---------------
Report date pre-tax NAV per share price Pre-tax After-tax
- --------------------------------------------------------------------------------
11/19/98 $45.10 $24.500 (45.7%) (38.3%)
09/11/98 46.76 25.875 (44.7) (37.0)
05/26/98 51.94 22.688 (56.3) (50.3)
03/27/98 51.10 23.063 (54.9) (50.7)
12/05/97 35.29 Conservative 22.188 (37.1) (31.0)
38.16 Aggressive 22.188 (41.9) (36.6)
11/19/97 35.29 Conservative 19.063 (46.0) (40.7)
38.16 Aggressive 19.063 (50.0) (45.6)
11/18/97 34.47 19.375 (43.8) NA
09/12/97 36.41 Conservative 20.625 (43.4) (37.4)
39.28 Aggressive 20.625 (47.5) (42.5)
09/03/97 34.15 20.625 (39.6) NA
06/24/97 36.68 Conservative 23.625 (35.6) (30.0)
38.59 Aggressive 23.625 (38.8) (33.8)
04/09/97 28.03 19.000 (32.2) NA
Source: Publicly disclosed research reports.
(1) Certain research analysts valued PEC's NAV under both aggressive and
conservative scenarios. PEC is incorporated in the US and subject to US
taxation.
Deutsche Banc Alex. Brown
Deutsche Bank |/|
<PAGE>
Holding company discounts Appendix II
[LOGO] ------------------------------------------------------------------------
Israeli holding company benchmarks(1)
The discount to after-tax NAV for Ampal-American, a comparable U.S. holding
company, has increased to over 37 percent during 1999
Discount to NAV
Estimated Share ----------------------
Report date pre-tax NAV per share price Pre-tax After-tax
- --------------------------------------------------------------------------------
06/01/99 $ 9.38 $5.125 (45.4%) (37.5%)
04/01/99 9.09 4.125 (54.6) (47.8)
09/04/98 9.92 4.563 (54.0) (47.7)
12/05/97 9.76 Conservative 4.875 (50.1) (43.1)
10.16 Aggressive 4.875 (52.0) (46.1)
09/12/97 8.18 Conservative 5.438 (33.5) (19.9)
8.84 Aggressive 5.438 (38.5) (28.1)
06/25/97 8.97 Conservative 6.125 (31.7) (16.2)
9.60 Aggressive 6.125 (36.2) (25.4)
09/04/96 7.88 Conservative 4.750 (39.7) (22.4)
8.25 Aggressive 4.750 (42.4) (32.1)
Source: Publicly disclosed research reports.
(1) Research analysts valued Ampal American's NAV under both aggressive and
conservative scenarios. Ampal-American is incorporated in the US and
subject to US taxation.
Deutsche Banc Alex. Brown
Deutsche Bank |/|
<PAGE>
Annex 1 to
Exhibit 99(b)(4)
Security Price History 18-Aug-1999
PEC ISRAEL
ECONOMIC CORP COM
NYSE IEC
U.S. Dollar 70509810
Date Volume Close
02-Jan-1996 2800 24.7500
03-Jan-1996 1400 24.2500
04-Jan-1996 8700 24.0000
05-Jan-1996 5100 24.0000
08-Jan-1996 1700 24.2500
09-Jan-1996 6800 24.1250
10-Jan-1996 1600 23.5000
11-Jan-1996 1900 23.6250
12-Jan-1996 1300 23.5000
15-Jan-1996 1400 23.1250
16-Jan-1996 800 23.0000
17-Jan-1996 31600 24.1250
18-Jan-1996 16500 23.6250
19-Jan-1996 30600 23.1250
22-Jan-1996 4000 23.1250
23-Jan-1996 3900 23.2500
24-Jan-1996 30600 23.0000
25-Jan-1996 3000 23.2500
26-Jan-1996 20500 23.2500
29-Jan-1996 400 23.2500
30-Jan-1996 25900 23.1250
31-Jan-1996 3400 23.0000
01-Feb-1996 1800 23.0000
02-Feb-1996 41000 22.6250
05-Feb-1996 1400 22.6250
06-Feb-1996 7000 22.6250
07-Feb-1996 10100 22.6250
08-Feb-1996 30400 22.8750
09-Feb-1996 9000 22.8750
12-Feb-1996 4200 23.1250
13-Feb-1996 3400 23.0000
14-Feb-1996 3700 22.7500
15-Feb-1996 2800 22.8750
16-Feb-1996 2200 23.0000
20-Feb-1996 22700 22.5000
21-Feb-1996 11800 22.2500
22-Feb-1996 33800 21.8750
23-Feb-1996 10600 21.8750
26-Feb-1996 2100 21.6250
27-Feb-1996 3900 22.1250
<PAGE>
28-Feb-1996 5800 21.8750
29-Feb-1996 300 21.7500
01-Mar-1996 12300 21.5000
04-Mar-1996 1200 21.5000
05-Mar-1996 2800 21.3750
06-Mar-1996 5100 21.2500
07-Mar-1996 1200 21.3750
08-Mar-1996 4000 20.7500
11-Mar-1996 7600 21.0000
12-Mar-1996 4300 20.8750
13-Mar-1996 1700 20.8750
14-Mar-1996 6400 20.5000
15-Mar-1996 10400 19.8750
18-Mar-1996 7600 19.7500
19-Mar-1996 5300 20.0000
20-Mar-1996 2200 20.0000
21-Mar-1996 4900 20.0000
22-Mar-1996 2600 20.3750
25-Mar-1996 1000 20.8750
26-Mar-1996 10000 21.5000
27-Mar-1996 2200 21.5000
28-Mar-1996 2600 21.3750
29-Mar-1996 18700 21.5000
01-Apr-1996 112100 21.8750
02-Apr-1996 100 21.8750
03-Apr-1996 400 21.8750
04-Apr-1996 1200 22.1250
08-Apr-1996 900 21.7500
09-Apr-1996 1200 21.5000
10-Apr-1996 5000 21.5000
11-Apr-1996 200 21.2500
12-Apr-1996 100 21.2500
15-Apr-1996 4000 21.5000
16-Apr-1996 1000 22.0000
17-Apr-1996 9400 22.1250
18-Apr-1996 800 22.0000
19-Apr-1996 1500 21.7500
22-Apr-1996 4100 22.2500
23-Apr-1996 2500 22.5000
24-Apr-1996 1300 22.3750
25-Apr-1996 600 22.3750
26-Apr-1996 7800 22.7500
29-Apr-1996 4800 22.5000
30-Apr-1996 5600 22.6250
01-May-1996 6300 22.3750
02-May-1996 14300 22.2500
03-May-1996 2200 22.3750
06-May-1996 5300 22.2500
07-May-1996 8000 22.1250
<PAGE>
08-May-1996 9300 21.6250
09-May-1996 1900 21.1250
10-May-1996 27800 21.2500
13-May-1996 3900 21.7500
14-May-1996 5200 21.6250
15-May-1996 24800 21.5000
16-May-1996 3800 21.3750
17-May-1996 6800 21.7500
20-May-1996 600 22.0000
21-May-1996 17700 21.2500
22-May-1996 4800 21.1250
23-May-1996 20500 20.7500
24-May-1996 2900 20.3750
28-May-1996 17900 20.0000
29-May-1996 18200 19.6250
30-May-1996 31400 19.1250
31-May-1996 63300 19.2500
03-Jun-1996 17700 18.8750
04-Jun-1996 16800 18.7500
05-Jun-1996 25500 18.7500
06-Jun-1996 13500 18.7500
07-Jun-1996 1800 18.7500
10-Jun-1996 10600 18.7500
11-Jun-1996 1900 18.6250
12-Jun-1996 12600 18.1250
13-Jun-1996 12700 17.7500
14-Jun-1996 103300 17.6250
17-Jun-1996 7800 18.6250
18-Jun-1996 6300 19.0000
19-Jun-1996 6500 18.6250
20-Jun-1996 2500 18.2500
21-Jun-1996 1700 18.3750
24-Jun-1996 9700 17.8750
25-Jun-1996 1100 17.7500
26-Jun-1996 1800 17.6250
27-Jun-1996 1200 17.8750
28-Jun-1996 2300 18.1250
01-Jul-1996 2300 18.2500
02-Jul-1996 13800 18.1250
03-Jul-1996 1100 18.0000
05-Jul-1996 1400 18.2500
08-Jul-1996 2500 17.8750
09-Jul-1996 6400 17.5000
10-Jul-1996 15400 16.5000
11-Jul-1996 21100 16.0000
12-Jul-1996 5700 15.8750
15-Jul-1996 15100 15.8750
16-Jul-1996 1200 15.5000
17-Jul-1996 12200 16.0000
<PAGE>
18-Jul-1996 36400 17.2500
19-Jul-1996 9700 17.1250
22-Jul-1996 3000 16.5000
23-Jul-1996 2500 16.1250
24-Jul-1996 9600 16.3750
25-Jul-1996 7500 16.3750
26-Jul-1996 5200 16.3750
29-Jul-1996 21800 16.5000
30-Jul-1996 5300 17.0000
31-Jul-1996 13700 17.3750
01-Aug-1996 24600 17.3750
02-Aug-1996 2900 17.2500
05-Aug-1996 7500 17.5000
06-Aug-1996 5500 17.7500
07-Aug-1996 6100 17.7500
08-Aug-1996 3500 17.7500
09-Aug-1996 2700 17.8750
12-Aug-1996 1200 18.0000
13-Aug-1996 24400 17.7500
14-Aug-1996 29800 18.0000
15-Aug-1996 23800 18.0000
16-Aug-1996 5100 18.2500
19-Aug-1996 6200 17.8750
20-Aug-1996 18600 18.0000
21-Aug-1996 1100 17.7500
22-Aug-1996 15700 18.0000
23-Aug-1996 4600 18.0000
26-Aug-1996 6000 17.5000
27-Aug-1996 7200 17.2500
28-Aug-1996 7900 17.3750
29-Aug-1996 3300 17.2500
30-Aug-1996 3800 17.6250
03-Sep-1996 9000 17.8750
04-Sep-1996 18800 18.3750
05-Sep-1996 2500 18.2500
06-Sep-1996 8000 18.3750
09-Sep-1996 4700 18.8750
10-Sep-1996 13900 18.7500
11-Sep-1996 9400 18.6250
12-Sep-1996 21500 18.0000
13-Sep-1996 4500 18.1250
16-Sep-1996 5500 18.3750
17-Sep-1996 23200 18.0000
18-Sep-1996 7600 17.8750
19-Sep-1996 104800 17.3750
20-Sep-1996 4900 17.7500
23-Sep-1996 2900 17.6250
24-Sep-1996 2200 17.6250
25-Sep-1996 3500 17.3750
<PAGE>
26-Sep-1996 16700 17.2500
27-Sep-1996 3600 17.1250
30-Sep-1996 3600 17.1250
01-Oct-1996 4800 16.8750
02-Oct-1996 2800 17.3750
03-Oct-1996 7200 17.1250
04-Oct-1996 5300 17.1250
07-Oct-1996 2700 17.1250
08-Oct-1996 9700 17.0000
09-Oct-1996 1300 16.8750
10-Oct-1996 2400 16.8750
11-Oct-1996 11700 16.8750
14-Oct-1996 10100 16.7500
15-Oct-1996 7600 16.3750
16-Oct-1996 1800 16.3750
17-Oct-1996 1000 16.6250
18-Oct-1996 800 16.5000
21-Oct-1996 2800 16.7500
22-Oct-1996 2200 16.6250
23-Oct-1996 1600 16.6250
24-Oct-1996 4100 16.2500
25-Oct-1996 8500 16.0000
28-Oct-1996 500 15.8750
29-Oct-1996 29100 15.3750
30-Oct-1996 44700 15.1250
31-Oct-1996 28800 15.2500
01-Nov-1996 13200 15.2500
04-Nov-1996 4900 15.7500
05-Nov-1996 4700 15.5000
06-Nov-1996 3500 15.0000
07-Nov-1996 164500 14.7500
08-Nov-1996 11100 14.6250
11-Nov-1996 600 14.7500
12-Nov-1996 20200 15.0000
13-Nov-1996 12100 15.5000
14-Nov-1996 7700 15.5000
15-Nov-1996 15800 15.1250
18-Nov-1996 40200 15.5000
19-Nov-1996 15600 15.6250
20-Nov-1996 16000 15.7500
21-Nov-1996 8800 16.2500
22-Nov-1996 14300 16.2500
25-Nov-1996 4300 16.2500
26-Nov-1996 6700 16.1250
27-Nov-1996 18100 16.2500
29-Nov-1996 9700 16.6250
02-Dec-1996 20700 16.5000
03-Dec-1996 10100 17.0000
04-Dec-1996 3800 17.0000
<PAGE>
05-Dec-1996 8600 17.0000
06-Dec-1996 7300 16.6250
09-Dec-1996 13900 17.1250
10-Dec-1996 7300 17.2500
11-Dec-1996 50400 17.0000
12-Dec-1996 33800 16.8750
13-Dec-1996 44700 16.8750
16-Dec-1996 53800 16.5000
17-Dec-1996 2300 16.1250
18-Dec-1996 13500 16.6250
19-Dec-1996 41600 17.3750
20-Dec-1996 4500 17.6250
23-Dec-1996 19700 17.8750
24-Dec-1996 26500 18.0000
26-Dec-1996 18300 17.6250
27-Dec-1996 2200 17.5000
30-Dec-1996 7000 17.2500
31-Dec-1996 12500 16.7500
02-Jan-1997 13500 17.7500
03-Jan-1997 42100 17.7500
06-Jan-1997 6300 17.5000
07-Jan-1997 800 17.6250
08-Jan-1997 2700 17.5000
09-Jan-1997 4900 17.5000
10-Jan-1997 4200 17.0000
13-Jan-1997 12700 17.8750
14-Jan-1997 8100 18.1250
15-Jan-1997 24300 18.8750
16-Jan-1997 14400 19.2500
17-Jan-1997 1800 19.3750
20-Jan-1997 6200 19.5000
21-Jan-1997 24800 19.8750
22-Jan-1997 4000 20.0000
23-Jan-1997 6600 20.3750
24-Jan-1997 3600 19.8750
27-Jan-1997 900 19.7500
28-Jan-1997 2500 19.7500
29-Jan-1997 11000 20.0000
30-Jan-1997 3000 20.2500
31-Jan-1997 3100 20.1250
03-Feb-1997 9000 20.7500
04-Feb-1997 3400 20.8750
05-Feb-1997 8100 20.8750
06-Feb-1997 1100 20.5000
07-Feb-1997 13400 20.7500
10-Feb-1997 12400 20.7500
11-Feb-1997 600 20.6250
12-Feb-1997 10900 20.7500
13-Feb-1997 5000 21.0000
<PAGE>
14-Feb-1997 1000 20.7500
18-Feb-1997 4500 21.5000
19-Feb-1997 6100 21.3750
20-Feb-1997 6300 21.3750
21-Feb-1997 6600 21.5000
24-Feb-1997 1700 21.0000
25-Feb-1997 1700 21.3750
26-Feb-1997 4400 21.1250
27-Feb-1997 14500 20.2500
28-Feb-1997 1100 20.1250
03-Mar-1997 2000 20.1250
04-Mar-1997 3900 20.2500
05-Mar-1997 4200 20.2500
06-Mar-1997 5100 20.3750
07-Mar-1997 11000 20.5000
10-Mar-1997 300 20.3750
11-Mar-1997 11000 20.6250
12-Mar-1997 2800 20.2500
13-Mar-1997 1900 20.1250
14-Mar-1997 1100 20.1250
17-Mar-1997 4100 19.8750
18-Mar-1997 4700 19.8750
19-Mar-1997 5400 19.6250
20-Mar-1997 10700 19.3750
21-Mar-1997 2000 19.2500
24-Mar-1997 900 19.0000
25-Mar-1997 3200 18.3750
26-Mar-1997 3900 19.1250
27-Mar-1997 13100 18.8750
31-Mar-1997 3300 18.8750
01-Apr-1997 18700 18.8750
02-Apr-1997 36000 18.7500
03-Apr-1997 1100 18.7500
04-Apr-1997 5300 19.2500
07-Apr-1997 1800 19.3750
08-Apr-1997 19.3750
09-Apr-1997 3100 19.0000
10-Apr-1997 1100 19.2500
11-Apr-1997 5500 18.6250
14-Apr-1997 5900 19.1250
15-Apr-1997 5500 18.7500
16-Apr-1997 800 18.7500
17-Apr-1997 500 18.7500
18-Apr-1997 1000 18.7500
21-Apr-1997 1100 18.6250
22-Apr-1997 8600 18.0000
23-Apr-1997 1700 18.3750
24-Apr-1997 2400 18.7500
25-Apr-1997 18.7500
<PAGE>
28-Apr-1997 3300 18.5000
29-Apr-1997 3100 18.7500
30-Apr-1997 3000 19.0000
01-May-1997 3600 18.8750
02-May-1997 2600 19.1250
05-May-1997 1600 19.6250
06-May-1997 300 19.7500
07-May-1997 400 19.3750
08-May-1997 1000 19.1250
09-May-1997 1200 19.2500
12-May-1997 22700 19.2500
13-May-1997 16300 19.8750
14-May-1997 4800 20.2500
15-May-1997 8300 20.3750
16-May-1997 1300 20.7500
19-May-1997 3900 21.1250
20-May-1997 3700 21.5000
21-May-1997 2400 21.7500
22-May-1997 4000 21.7500
23-May-1997 3400 21.6250
27-May-1997 1600 21.8750
28-May-1997 7300 22.5000
29-May-1997 7800 22.8750
30-May-1997 2700 22.7500
02-Jun-1997 10600 23.1250
03-Jun-1997 39700 23.1250
04-Jun-1997 11300 23.2500
05-Jun-1997 2000 23.3750
06-Jun-1997 4500 23.8750
09-Jun-1997 1600 23.7500
10-Jun-1997 1900 23.6250
11-Jun-1997 1300 23.8750
12-Jun-1997 2300 23.8750
13-Jun-1997 19200 24.5000
16-Jun-1997 20500 24.5000
17-Jun-1997 152900 25.0000
18-Jun-1997 30500 25.1250
19-Jun-1997 79200 24.8750
20-Jun-1997 43800 24.6250
23-Jun-1997 5100 24.1250
24-Jun-1997 3000 23.6250
25-Jun-1997 900 23.7500
26-Jun-1997 9200 24.2500
27-Jun-1997 100 24.0000
30-Jun-1997 3900 24.0000
01-Jul-1997 6100 23.8750
02-Jul-1997 4500 24.0000
03-Jul-1997 1200 24.0000
07-Jul-1997 2600 24.0000
<PAGE>
08-Jul-1997 7900 24.0000
09-Jul-1997 8000 23.6250
10-Jul-1997 15700 24.2500
11-Jul-1997 2000 24.1250
14-Jul-1997 300 24.1250
15-Jul-1997 600 23.9375
16-Jul-1997 9000 23.8125
17-Jul-1997 7300 23.1875
18-Jul-1997 7900 23.4375
21-Jul-1997 7400 22.8125
22-Jul-1997 3000 22.8125
23-Jul-1997 4000 22.8750
24-Jul-1997 6900 22.5000
25-Jul-1997 5000 22.2500
28-Jul-1997 4100 22.8125
29-Jul-1997 20500 22.8125
30-Jul-1997 4000 22.5000
31-Jul-1997 22.6250
01-Aug-1997 3100 22.5625
04-Aug-1997 600 22.2500
05-Aug-1997 2200 22.5625
06-Aug-1997 1500 22.7500
07-Aug-1997 300 22.6875
08-Aug-1997 1000 22.1875
11-Aug-1997 6600 22.0000
12-Aug-1997 11400 21.6875
13-Aug-1997 5500 21.8750
14-Aug-1997 12300 21.7500
15-Aug-1997 16700 20.6250
18-Aug-1997 11300 20.5625
19-Aug-1997 28400 20.6250
20-Aug-1997 58500 21.2500
21-Aug-1997 16700 21.8750
22-Aug-1997 5400 21.2500
25-Aug-1997 9700 20.8125
26-Aug-1997 7500 20.8125
27-Aug-1997 17100 20.8750
28-Aug-1997 6800 20.8750
29-Aug-1997 2900 20.6875
02-Sep-1997 8300 20.7500
03-Sep-1997 2900 20.6250
04-Sep-1997 24100 20.7500
05-Sep-1997 9400 20.7500
08-Sep-1997 6800 20.8125
09-Sep-1997 3700 20.6875
10-Sep-1997 1100 20.3750
11-Sep-1997 1400 20.6875
12-Sep-1997 2300 20.6250
15-Sep-1997 6600 20.6875
<PAGE>
16-Sep-1997 16700 20.1250
17-Sep-1997 2300 20.0625
18-Sep-1997 700 20.1250
19-Sep-1997 5600 19.9375
22-Sep-1997 34200 19.0000
23-Sep-1997 12700 19.1250
24-Sep-1997 303800 19.2500
25-Sep-1997 5000 19.4375
26-Sep-1997 8100 19.5000
29-Sep-1997 23600 19.2500
30-Sep-1997 11700 19.3125
01-Oct-1997 41900 19.8125
02-Oct-1997 12600 20.1250
03-Oct-1997 7400 20.0000
06-Oct-1997 18700 19.8750
07-Oct-1997 15500 20.0000
08-Oct-1997 67300 19.9375
09-Oct-1997 49000 19.9375
10-Oct-1997 106200 20.0625
13-Oct-1997 15200 20.5625
14-Oct-1997 24700 21.0000
15-Oct-1997 64200 21.5625
16-Oct-1997 13200 21.5000
17-Oct-1997 25500 21.5000
20-Oct-1997 9900 21.5000
21-Oct-1997 2600 21.5000
22-Oct-1997 13100 21.5000
23-Oct-1997 22600 21.2500
24-Oct-1997 8100 21.1250
27-Oct-1997 34400 19.6250
28-Oct-1997 15900 19.9375
29-Oct-1997 14000 20.3750
30-Oct-1997 13200 20.1875
31-Oct-1997 4800 20.0000
03-Nov-1997 3900 20.2500
04-Nov-1997 15300 20.2500
05-Nov-1997 6200 20.3750
06-Nov-1997 20700 20.0000
07-Nov-1997 19700 19.7500
10-Nov-1997 28400 19.8125
11-Nov-1997 9300 19.7500
12-Nov-1997 14000 18.9375
13-Nov-1997 4600 18.9375
14-Nov-1997 6800 19.5625
17-Nov-1997 3700 20.1250
18-Nov-1997 3700 19.3750
19-Nov-1997 5100 19.0625
20-Nov-1997 11600 19.6250
21-Nov-1997 9500 20.4375
<PAGE>
24-Nov-1997 7800 20.2500
25-Nov-1997 4100 20.1250
26-Nov-1997 3100 20.4375
28-Nov-1997 100 20.4375
01-Dec-1997 44900 20.3750
02-Dec-1997 27400 20.4375
03-Dec-1997 24500 21.1250
04-Dec-1997 14800 22.0000
05-Dec-1997 9100 22.1875
08-Dec-1997 4500 22.0000
09-Dec-1997 12000 21.6250
10-Dec-1997 4800 21.8125
11-Dec-1997 4100 21.1250
12-Dec-1997 4400 21.1250
15-Dec-1997 5500 21.5000
16-Dec-1997 2000 21.5000
17-Dec-1997 8800 21.0000
18-Dec-1997 1000 21.0625
19-Dec-1997 2100 21.0625
22-Dec-1997 10300 21.4375
23-Dec-1997 16200 21.6875
24-Dec-1997 5300 21.6250
26-Dec-1997 3600 21.6250
29-Dec-1997 18700 21.6250
30-Dec-1997 2900 21.5000
31-Dec-1997 3700 21.6250
02-Jan-1998 700 21.7500
05-Jan-1998 13400 21.6875
06-Jan-1998 6400 21.6875
07-Jan-1998 50800 21.6250
08-Jan-1998 1400 21.3125
09-Jan-1998 2400 21.0000
12-Jan-1998 8200 20.6250
13-Jan-1998 5200 20.7500
14-Jan-1998 1300 20.7500
15-Jan-1998 1500 20.5000
16-Jan-1998 5600 20.8750
20-Jan-1998 9600 21.0000
21-Jan-1998 6500 20.5000
22-Jan-1998 3500 19.9375
23-Jan-1998 6000 20.3750
26-Jan-1998 7300 20.3750
27-Jan-1998 4500 20.3125
28-Jan-1998 4500 20.3125
29-Jan-1998 5400 20.5000
30-Jan-1998 6700 20.6875
02-Feb-1998 6800 21.2500
03-Feb-1998 3800 21.7500
04-Feb-1998 15600 21.2500
<PAGE>
05-Feb-1998 2700 20.6875
06-Feb-1998 500 20.5000
09-Feb-1998 800 20.4375
10-Feb-1998 1500 20.6250
11-Feb-1998 1400 20.1875
12-Feb-1998 12800 20.0000
13-Feb-1998 41900 20.4375
17-Feb-1998 3900 20.8750
18-Feb-1998 2700 20.6250
19-Feb-1998 1500 20.5000
20-Feb-1998 7000 20.3750
23-Feb-1998 4200 20.6250
24-Feb-1998 2100 20.8750
25-Feb-1998 1400 20.6250
26-Feb-1998 5900 20.3125
27-Feb-1998 4900 20.1875
02-Mar-1998 2900 20.6875
03-Mar-1998 6600 20.8750
04-Mar-1998 1800 20.8125
05-Mar-1998 2900 20.7500
06-Mar-1998 6500 20.9375
09-Mar-1998 3100 21.0625
10-Mar-1998 7600 21.6875
11-Mar-1998 18800 21.8125
12-Mar-1998 4600 21.8750
13-Mar-1998 8400 21.8125
16-Mar-1998 4600 21.8750
17-Mar-1998 200 21.8125
18-Mar-1998 2500 21.7500
19-Mar-1998 3200 21.9375
20-Mar-1998 2800 21.9375
23-Mar-1998 3000 21.5000
24-Mar-1998 2900 21.1250
25-Mar-1998 2700 21.3750
26-Mar-1998 36500 22.9375
27-Mar-1998 20600 23.0625
30-Mar-1998 13000 22.6875
31-Mar-1998 21800 22.9375
01-Apr-1998 22800 23.6250
02-Apr-1998 11400 23.7500
03-Apr-1998 45800 24.2500
06-Apr-1998 15600 24.0000
07-Apr-1998 13300 23.8125
08-Apr-1998 8500 23.5000
09-Apr-1998 3400 23.1875
13-Apr-1998 12500 23.5000
14-Apr-1998 7900 23.8125
15-Apr-1998 9700 23.9375
16-Apr-1998 3200 23.9375
<PAGE>
17-Apr-1998 13100 24.0000
20-Apr-1998 10600 24.0000
21-Apr-1998 1500 24.1250
22-Apr-1998 4100 24.1250
23-Apr-1998 32000 23.7500
24-Apr-1998 30000 23.6250
27-Apr-1998 20300 23.1250
28-Apr-1998 8600 23.3750
29-Apr-1998 3300 23.3750
30-Apr-1998 4600 23.5625
01-May-1998 300 23.6250
04-May-1998 17500 23.8125
05-May-1998 4700 23.8750
06-May-1998 8300 23.5625
07-May-1998 15100 23.3125
08-May-1998 21700 23.3125
11-May-1998 26900 23.3125
12-May-1998 17200 23.3750
13-May-1998 34500 23.2500
14-May-1998 4700 23.2500
15-May-1998 3800 23.1250
18-May-1998 12800 23.1250
19-May-1998 5200 23.0625
20-May-1998 13200 22.8750
21-May-1998 4100 22.8750
22-May-1998 3700 22.6875
26-May-1998 1400 22.6875
27-May-1998 13800 22.0000
28-May-1998 7300 22.0000
29-May-1998 12800 22.1250
01-Jun-1998 11600 21.8125
02-Jun-1998 15100 21.6875
03-Jun-1998 20600 22.4375
04-Jun-1998 30400 22.3750
05-Jun-1998 27000 22.3750
08-Jun-1998 2500 22.3125
09-Jun-1998 20500 22.8125
10-Jun-1998 5300 22.7500
11-Jun-1998 2700 22.8750
12-Jun-1998 1600 22.6875
15-Jun-1998 5200 22.2500
16-Jun-1998 11200 22.3750
17-Jun-1998 16300 22.2500
18-Jun-1998 5900 22.6875
19-Jun-1998 10700 23.1250
22-Jun-1998 4000 23.1250
23-Jun-1998 2800 23.0625
24-Jun-1998 7400 23.4375
25-Jun-1998 6500 23.6875
<PAGE>
26-Jun-1998 3200 23.7500
29-Jun-1998 10800 23.7500
30-Jun-1998 6100 23.8750
01-Jul-1998 8900 23.8750
02-Jul-1998 2800 23.9375
06-Jul-1998 17000 24.0000
07-Jul-1998 46400 23.9375
08-Jul-1998 10900 24.0000
09-Jul-1998 8200 24.2500
10-Jul-1998 1900 24.3125
13-Jul-1998 11100 24.7500
14-Jul-1998 8000 24.7500
15-Jul-1998 5300 24.9375
16-Jul-1998 9900 24.9375
17-Jul-1998 500 24.8125
20-Jul-1998 2400 25.0000
21-Jul-1998 6500 24.8125
22-Jul-1998 13200 24.9375
23-Jul-1998 2200 24.8125
24-Jul-1998 12800 25.0000
27-Jul-1998 9300 25.1875
28-Jul-1998 8600 24.8125
29-Jul-1998 8200 24.6250
30-Jul-1998 4200 24.6875
31-Jul-1998 14800 24.8750
03-Aug-1998 2700 24.5625
04-Aug-1998 15500 24.6875
05-Aug-1998 1200 24.4375
06-Aug-1998 12700 25.0625
07-Aug-1998 11000 25.0625
10-Aug-1998 3800 25.0625
11-Aug-1998 3600 24.2500
12-Aug-1998 17100 25.0000
13-Aug-1998 20200 25.0000
14-Aug-1998 4800 24.8125
17-Aug-1998 5100 25.0000
18-Aug-1998 11800 25.1250
19-Aug-1998 8000 25.1250
20-Aug-1998 8000 25.0000
21-Aug-1998 5200 24.5625
24-Aug-1998 4500 24.7500
25-Aug-1998 4900 25.0000
26-Aug-1998 4300 24.8750
27-Aug-1998 14000 23.7500
28-Aug-1998 4900 23.8125
31-Aug-1998 16500 23.2500
01-Sep-1998 17400 23.4375
02-Sep-1998 5800 23.5625
03-Sep-1998 19400 22.8125
<PAGE>
04-Sep-1998 8900 22.8125
08-Sep-1998 37500 25.0000
09-Sep-1998 61200 25.6250
10-Sep-1998 22500 25.3750
11-Sep-1998 15700 25.8750
14-Sep-1998 8300 26.0625
15-Sep-1998 1600 26.0000
16-Sep-1998 5300 26.2500
17-Sep-1998 8500 26.1875
18-Sep-1998 5400 26.3750
21-Sep-1998 4000 26.1250
22-Sep-1998 2800 26.1250
23-Sep-1998 6900 25.8750
24-Sep-1998 13000 26.0625
25-Sep-1998 7000 25.8750
28-Sep-1998 8400 25.8750
29-Sep-1998 18800 25.5000
30-Sep-1998 1600 25.6250
01-Oct-1998 7700 24.8750
02-Oct-1998 17100 25.6250
05-Oct-1998 12100 25.5000
06-Oct-1998 4000 24.8750
07-Oct-1998 6600 24.5000
08-Oct-1998 11800 24.1875
09-Oct-1998 3500 24.1250
12-Oct-1998 18200 25.0000
13-Oct-1998 200 25.0000
14-Oct-1998 1700 24.9375
15-Oct-1998 3700 24.6875
16-Oct-1998 1300 24.9375
19-Oct-1998 1900 24.9375
20-Oct-1998 1600 25.1875
21-Oct-1998 3100 24.5625
22-Oct-1998 900 24.8125
23-Oct-1998 100 24.8750
26-Oct-1998 900 24.9375
27-Oct-1998 5000 24.8125
28-Oct-1998 1200 24.8750
29-Oct-1998 600 24.8125
30-Oct-1998 1400 24.8125
02-Nov-1998 20300 25.0625
03-Nov-1998 8000 24.9375
04-Nov-1998 25.0625
05-Nov-1998 4300 24.7500
06-Nov-1998 1200 24.8750
09-Nov-1998 2200 24.9375
10-Nov-1998 4700 24.3125
11-Nov-1998 1500 24.6250
12-Nov-1998 24.5000
<PAGE>
13-Nov-1998 3000 24.1250
16-Nov-1998 12300 23.9375
17-Nov-1998 4400 24.2500
18-Nov-1998 700 24.3750
19-Nov-1998 1800 24.5000
20-Nov-1998 3600 24.3125
23-Nov-1998 400 24.2500
24-Nov-1998 2700 24.0625
25-Nov-1998 400 24.1875
27-Nov-1998 24.1875
30-Nov-1998 700 24.0625
01-Dec-1998 600 24.3750
02-Dec-1998 1400 24.5625
03-Dec-1998 2000 24.5625
04-Dec-1998 24.5625
07-Dec-1998 700 24.5000
08-Dec-1998 1900 24.6875
09-Dec-1998 8600 24.5625
10-Dec-1998 4500 24.1250
11-Dec-1998 14400 28.1250
14-Dec-1998 4000 28.3750
15-Dec-1998 2200 28.5000
16-Dec-1998 4400 28.7500
17-Dec-1998 6100 28.6250
18-Dec-1998 4700 28.6875
21-Dec-1998 21100 28.6875
22-Dec-1998 11000 28.2500
23-Dec-1998 39700 28.4375
24-Dec-1998 2100 28.4375
28-Dec-1998 8300 28.5625
29-Dec-1998 1500 28.5625
30-Dec-1998 900 28.5000
31-Dec-1998 1800 28.7500
04-Jan-1999 6200 28.8750
05-Jan-1999 1100 28.8750
06-Jan-1999 11500 28.8750
07-Jan-1999 1700 29.0625
08-Jan-1999 2700 29.0625
11-Jan-1999 3000 28.8750
12-Jan-1999 5800 28.8750
13-Jan-1999 1000 28.6250
14-Jan-1999 1400 28.6250
15-Jan-1999 700 28.8750
19-Jan-1999 400 28.7500
20-Jan-1999 2800 28.6250
21-Jan-1999 300 28.6875
22-Jan-1999 2600 28.3750
25-Jan-1999 2000 28.4375
26-Jan-1999 1300 28.5000
<PAGE>
27-Jan-1999 15200 28.4375
28-Jan-1999 1600 28.5000
29-Jan-1999 1200 28.6250
01-Feb-1999 1900 28.5625
02-Feb-1999 1200 28.5000
03-Feb-1999 700 28.5000
04-Feb-1999 300 28.5625
05-Feb-1999 32800 28.8750
08-Feb-1999 900 28.6250
09-Feb-1999 2600 28.6250
10-Feb-1999 1600 28.5000
11-Feb-1999 100 28.6250
12-Feb-1999 2800 28.4375
16-Feb-1999 1800 28.5000
17-Feb-1999 2600 28.7500
18-Feb-1999 500 28.8750
19-Feb-1999 500 28.8125
22-Feb-1999 700 28.8125
23-Feb-1999 600 28.8750
24-Feb-1999 13300 29.1250
25-Feb-1999 600 29.1250
26-Feb-1999 2100 29.3125
01-Mar-1999 500 29.4375
02-Mar-1999 4000 29.0625
03-Mar-1999 1600 29.1250
04-Mar-1999 7200 29.2500
05-Mar-1999 800 29.3750
08-Mar-1999 18300 29.1250
09-Mar-1999 9800 29.6250
10-Mar-1999 3500 29.5000
11-Mar-1999 10600 29.7500
12-Mar-1999 1100 29.7500
15-Mar-1999 400 29.8125
16-Mar-1999 2300 29.5000
17-Mar-1999 1800 29.6250
18-Mar-1999 700 29.6250
19-Mar-1999 2200 29.6250
22-Mar-1999 4000 29.6875
23-Mar-1999 800 29.6875
24-Mar-1999 200 29.6875
25-Mar-1999 29.6875
26-Mar-1999 300 29.6875
29-Mar-1999 11800 29.6875
30-Mar-1999 78600 29.8125
31-Mar-1999 20400 30.1250
01-Apr-1999 26200 29.9375
05-Apr-1999 1500 30.1875
06-Apr-1999 600 30.3750
07-Apr-1999 1800 30.1250
<PAGE>
08-Apr-1999 5200 30.0625
09-Apr-1999 3900 30.3750
12-Apr-1999 3300 30.4375
13-Apr-1999 3500 30.3750
14-Apr-1999 6300 30.6250
15-Apr-1999 4600 30.8125
16-Apr-1999 1500 30.6875
19-Apr-1999 3000 30.8125
20-Apr-1999 3400 30.5625
21-Apr-1999 400 30.5625
22-Apr-1999 1400 30.6875
23-Apr-1999 300 30.6250
26-Apr-1999 100 30.6250
27-Apr-1999 700 30.6875
28-Apr-1999 2500 30.5625
29-Apr-1999 6000 30.5625
30-Apr-1999 4200 30.4375
03-May-1999 800 30.5000
04-May-1999 3100 30.6250
05-May-1999 3500 30.6875
06-May-1999 2200 30.8125
07-May-1999 1100 30.8125
10-May-1999 8500 31.6250
11-May-1999 9300 32.2500
12-May-1999 3000 32.6250
13-May-1999 1300 32.2500
14-May-1999 4000 32.3750
17-May-1999 600 32.1250
18-May-1999 600 32.2500
19-May-1999 2200 32.0625
20-May-1999 1600 32.4375
21-May-1999 100 32.5000
24-May-1999 700 32.2500
25-May-1999 500 32.2500
26-May-1999 16000 31.3750
27-May-1999 2800 31.5625
28-May-1999 1000 31.6875
01-Jun-1999 3600 32.0000
02-Jun-1999 7100 31.5000
03-Jun-1999 12600 31.5000
04-Jun-1999 2100 31.0000
07-Jun-1999 3300 31.0000
08-Jun-1999 500 30.9375
09-Jun-1999 1700 31.0000
10-Jun-1999 4400 31.0000
11-Jun-1999 7800 31.7500
14-Jun-1999 8200 31.7500
15-Jun-1999 10300 32.3750
16-Jun-1999 11400 32.8750
<PAGE>
17-Jun-1999 4300 32.7500
18-Jun-1999 8300 33.1250
21-Jun-1999 12700 33.1875
22-Jun-1999 4200 32.5625
23-Jun-1999 13300 31.5000
24-Jun-1999 5400 32.0000
25-Jun-1999 2200 32.4375
28-Jun-1999 1000 32.5000
29-Jun-1999 1200 32.3750
30-Jun-1999 9600 31.5000
01-Jul-1999 100 31.6875
02-Jul-1999 2300 31.3125
06-Jul-1999 4800 31.5625
07-Jul-1999 400 31.5000
08-Jul-1999 300 31.6250
09-Jul-1999 200 31.8125
12-Jul-1999 800 31.5000
13-Jul-1999 100 31.6250
14-Jul-1999 13500 30.5625
15-Jul-1999 16300 30.0000
16-Jul-1999 11700 30.2500
19-Jul-1999 21300 30.7500
20-Jul-1999 15200 30.2500
21-Jul-1999 7100 30.6250
22-Jul-1999 1900 30.6250
23-Jul-1999 100 30.5625
26-Jul-1999 11000 30.3750
27-Jul-1999 11100 30.5000
28-Jul-1999 1000 30.6875
29-Jul-1999 1000 30.5000
30-Jul-1999 5100 30.5000
02-Aug-1999 1700 30.4375
03-Aug-1999 2400 30.1875
04-Aug-1999 4600 30.0625
05-Aug-1999 9900 29.8125
06-Aug-1999 2000 29.8125
09-Aug-1999 1100 29.5000
10-Aug-1999 19100 28.2500
11-Aug-1999 1200 28.5625
12-Aug-1999 3600 29.0000
13-Aug-1999 2800 29.1250
16-Aug-1999 800 29.0625
17-Aug-1999 19000 29.2500
18-Aug-1999 10100 29.5000
<PAGE>
Multiple Securities (IDC/Exshare)
IEC 627093
PEC ISRAEL ECONOMIC CORP COM DISCOUNT INV CORP ILS1
Date
02-Sep-1996 17.6250 20.4212
03-Sep-1996 17.8750 20.4283
04-Sep-1996 18.3750 20.9433
05-Sep-1996 18.2500 21.0931
06-Sep-1996 18.3750 21.0594
09-Sep-1996 18.8750 21.3026
10-Sep-1996 18.7500 20.9678
11-Sep-1996 18.6250 19.9990
12-Sep-1996 18.0000 20.2018
13-Sep-1996 18.1250 20.1905
16-Sep-1996 18.3750 20.5995
17-Sep-1996 18.0000 20.3282
18-Sep-1996 17.8750 20.2187
19-Sep-1996 17.3750 20.2675
20-Sep-1996 17.7500 20.2545
23-Sep-1996 17.6250 20.2639
24-Sep-1996 17.6250 20.2147
25-Sep-1996 17.3750 20.1796
26-Sep-1996 17.2500 19.1130
27-Sep-1996 17.1250 19.0780
30-Sep-1996 17.1250 18.4361
01-Oct-1996 16.8750 18.2561
02-Oct-1996 17.3750 18.1701
03-Oct-1996 17.1250 17.9371
04-Oct-1996 17.1250 17.9290
07-Oct-1996 17.1250 18.3313
08-Oct-1996 17.0000 18.3894
09-Oct-1996 16.8750 18.0512
10-Oct-1996 16.8750 17.5029
11-Oct-1996 16.8750 17.5037
14-Oct-1996 16.7500 16.8203
15-Oct-1996 16.3750 17.5387
16-Oct-1996 16.3750 18.0471
17-Oct-1996 16.6250 18.4642
18-Oct-1996 16.5000 18.3351
21-Oct-1996 16.7500 18.1426
22-Oct-1996 16.6250 18.4637
23-Oct-1996 16.6250 18.9927
24-Oct-1996 16.2500 19.0709
25-Oct-1996 16.0000 19.0470
28-Oct-1996 15.8750 18.8035
29-Oct-1996 15.3750 18.4566
30-Oct-1996 15.1250 18.4582
31-Oct-1996 15.2500 18.8321
<PAGE>
01-Nov-1996 15.2500 18.9452
04-Nov-1996 15.7500 18.9937
05-Nov-1996 15.5000 18.6530
06-Nov-1996 15.0000 19.1361
07-Nov-1996 14.7500 19.6531
08-Nov-1996 14.6250 19.6322
11-Nov-1996 14.7500 20.2401
12-Nov-1996 15.0000 20.6130
13-Nov-1996 15.5000 20.9330
14-Nov-1996 15.5000 20.9529
15-Nov-1996 15.1250 20.9830
18-Nov-1996 15.5000 20.3437
19-Nov-1996 15.6250 20.5329
20-Nov-1996 15.7500 20.7629
21-Nov-1996 16.2500 20.4317
22-Nov-1996 16.2500 20.4105
25-Nov-1996 16.2500 20.2648
26-Nov-1996 16.1250 20.2782
27-Nov-1996 16.2500 20.2476
28-Nov-1996 16.2500 20.4363
29-Nov-1996 16.6250 20.4139
02-Dec-1996 16.5000 20.2167
03-Dec-1996 17.0000 21.2208
04-Dec-1996 17.0000 21.3866
05-Dec-1996 17.0000 21.8049
06-Dec-1996 16.6250 21.7858
09-Dec-1996 17.1250 21.6876
10-Dec-1996 17.2500 22.0722
11-Dec-1996 17.0000 21.7890
12-Dec-1996 16.8750 21.8603
13-Dec-1996 16.8750 21.8273
16-Dec-1996 16.5000 21.2189
17-Dec-1996 16.1250 20.8012
18-Dec-1996 16.6250 20.9647
19-Dec-1996 17.3750 21.1635
20-Dec-1996 17.6250 21.2286
23-Dec-1996 17.8750 21.6214
24-Dec-1996 18.0000 21.6811
25-Dec-1996 18.0000 21.7351
26-Dec-1996 17.6250 21.7378
27-Dec-1996 17.5000 21.8186
30-Dec-1996 17.2500 21.8441
31-Dec-1996 16.7500 21.3667
01-Jan-1997 16.7500 21.3667
02-Jan-1997 17.7500 22.3471
03-Jan-1997 17.7500 22.2879
06-Jan-1997 17.5000 23.9572
07-Jan-1997 17.6250 24.2976
08-Jan-1997 17.5000 24.5802
<PAGE>
09-Jan-1997 17.5000 24.4563
10-Jan-1997 17.0000 24.3802
13-Jan-1997 17.8750 25.2368
14-Jan-1997 18.1250 25.2345
15-Jan-1997 18.8750 25.7276
16-Jan-1997 19.2500 26.2635
17-Jan-1997 19.3750 26.1688
20-Jan-1997 19.5000 25.6484
21-Jan-1997 19.8750 25.5175
22-Jan-1997 20.0000 24.9160
23-Jan-1997 20.3750 24.3068
24-Jan-1997 19.8750 24.3585
27-Jan-1997 19.7500 23.9690
28-Jan-1997 19.7500 24.3519
29-Jan-1997 20.0000 25.0039
30-Jan-1997 20.2500 25.1249
31-Jan-1997 20.1250 25.1225
03-Feb-1997 20.7500 26.6860
04-Feb-1997 20.8750 26.2616
05-Feb-1997 20.8750 26.2614
06-Feb-1997 20.5000 26.1190
07-Feb-1997 20.7500 26.0062
10-Feb-1997 20.7500 25.7644
11-Feb-1997 20.6250 25.5863
12-Feb-1997 20.7500 25.4099
13-Feb-1997 21.0000 24.9079
14-Feb-1997 20.7500 24.9085
17-Feb-1997 20.7500 25.7260
18-Feb-1997 21.5000 26.6191
19-Feb-1997 21.3750 26.4907
20-Feb-1997 21.3750 27.1065
21-Feb-1997 21.5000 27.1347
24-Feb-1997 21.0000 26.1837
25-Feb-1997 21.3750 25.0564
26-Feb-1997 21.1250 24.5007
27-Feb-1997 20.2500 24.3770
28-Feb-1997 20.1250 24.3878
03-Mar-1997 20.1250 23.6649
04-Mar-1997 20.2500 24.1246
05-Mar-1997 20.2500 23.8599
06-Mar-1997 20.3750 23.7778
07-Mar-1997 20.5000 23.7707
10-Mar-1997 20.3750 23.4136
11-Mar-1997 20.6250 22.5400
12-Mar-1997 20.2500 22.5426
13-Mar-1997 20.1250 22.7530
14-Mar-1997 20.1250 22.7594
17-Mar-1997 19.8750 22.9871
18-Mar-1997 19.8750 22.5050
<PAGE>
19-Mar-1997 19.6250 22.4560
20-Mar-1997 19.3750 22.4567
21-Mar-1997 19.2500 22.4998
24-Mar-1997 19.0000 21.9845
25-Mar-1997 18.3750 22.2458
26-Mar-1997 19.1250 22.2897
27-Mar-1997 18.8750 22.9579
28-Mar-1997 18.8750 22.9652
31-Mar-1997 18.8750 24.1603
01-Apr-1997 18.8750 24.3386
02-Apr-1997 18.7500 25.1903
03-Apr-1997 18.7500 25.9394
04-Apr-1997 19.2500 25.8982
07-Apr-1997 19.3750 25.9595
08-Apr-1997 19.3750 25.8026
09-Apr-1997 19.0000 25.1517
10-Apr-1997 19.2500 25.0438
11-Apr-1997 18.6250 25.0109
14-Apr-1997 19.1250 25.5928
15-Apr-1997 18.7500 25.1651
16-Apr-1997 18.7500 24.9401
17-Apr-1997 18.7500 24.2813
18-Apr-1997 18.7500 24.2698
21-Apr-1997 18.6250 24.3482
22-Apr-1997 18.0000 24.3153
23-Apr-1997 18.3750 24.8305
24-Apr-1997 18.7500 24.8008
25-Apr-1997 18.7500 24.7730
28-Apr-1997 18.5000 24.7566
29-Apr-1997 18.7500 24.5174
30-Apr-1997 19.0000 24.6330
01-May-1997 18.8750 24.5024
02-May-1997 19.1250 24.4539
05-May-1997 19.6250 25.3791
06-May-1997 19.7500 25.8873
07-May-1997 19.3750 25.9067
08-May-1997 19.1250 25.9060
09-May-1997 19.2500 25.9394
12-May-1997 19.2500 25.9612
13-May-1997 19.8750 26.0161
14-May-1997 20.2500 27.1232
15-May-1997 20.3750 27.2228
16-May-1997 20.7500 27.3261
19-May-1997 21.1250 27.7360
20-May-1997 21.5000 28.5595
21-May-1997 21.7500 28.2740
22-May-1997 21.7500 28.5932
23-May-1997 21.6250 28.6095
26-May-1997 21.6250 28.9642
<PAGE>
27-May-1997 21.8750 28.9071
28-May-1997 22.5000 29.1586
29-May-1997 22.8750 28.6512
30-May-1997 22.7500 28.5907
02-Jun-1997 23.1250 28.8426
03-Jun-1997 23.1250 28.8540
04-Jun-1997 23.2500 28.6761
05-Jun-1997 23.3750 29.3857
06-Jun-1997 23.8750 29.3826
09-Jun-1997 23.7500 30.6739
10-Jun-1997 23.6250 30.6333
11-Jun-1997 23.8750 30.6582
12-Jun-1997 23.8750 29.7549
13-Jun-1997 24.5000 29.6768
16-Jun-1997 24.5000 30.2220
17-Jun-1997 25.0000 30.0248
18-Jun-1997 25.1250 30.3745
19-Jun-1997 24.8750 30.3192
20-Jun-1997 24.6250 30.2098
23-Jun-1997 24.1250 29.7222
24-Jun-1997 23.6250 28.7198
25-Jun-1997 23.7500 28.3277
26-Jun-1997 24.2500 27.5740
27-Jun-1997 24.0000 27.3893
30-Jun-1997 24.0000 26.9267
01-Jul-1997 23.8750 28.2084
02-Jul-1997 24.0000 29.0033
03-Jul-1997 24.0000 29.0085
04-Jul-1997 24.0000 28.8261
07-Jul-1997 24.0000 29.9803
08-Jul-1997 24.0000 29.5501
09-Jul-1997 23.6250 29.0250
10-Jul-1997 24.2500 28.5274
11-Jul-1997 24.1250 28.4616
14-Jul-1997 24.1250 28.6715
15-Jul-1997 23.9375 28.7735
16-Jul-1997 23.8125 28.4599
17-Jul-1997 23.1875 29.3202
18-Jul-1997 23.4375 29.3845
21-Jul-1997 22.8125 28.5312
22-Jul-1997 22.8125 28.6013
23-Jul-1997 22.8750 29.8616
24-Jul-1997 22.5000 30.7306
25-Jul-1997 22.2500 30.8133
28-Jul-1997 22.8125 31.6639
29-Jul-1997 22.8125 32.6820
30-Jul-1997 22.5000 31.9770
31-Jul-1997 22.6250 32.9564
01-Aug-1997 22.5625 32.9509
<PAGE>
04-Aug-1997 22.2500 32.2497
05-Aug-1997 22.5625 31.8886
06-Aug-1997 22.7500 31.2395
07-Aug-1997 22.6875 31.5602
08-Aug-1997 22.1875 31.6775
11-Aug-1997 22.0000 31.1878
12-Aug-1997 21.6875 31.1271
13-Aug-1997 21.8750 31.1760
14-Aug-1997 21.7500 31.7572
15-Aug-1997 20.6250 31.9211
18-Aug-1997 20.5625 31.1804
19-Aug-1997 20.6250 31.0784
20-Aug-1997 21.2500 31.3535
21-Aug-1997 21.8750 30.8999
22-Aug-1997 21.2500 30.9716
25-Aug-1997 20.8125 29.1237
26-Aug-1997 20.8125 28.4177
27-Aug-1997 20.8750 28.8034
28-Aug-1997 20.8750 28.7394
29-Aug-1997 20.6875 28.6872
01-Sep-1997 20.6875 27.7385
02-Sep-1997 20.7500 28.2114
03-Sep-1997 20.6250 28.7534
04-Sep-1997 20.7500 28.4862
05-Sep-1997 20.7500 28.5288
08-Sep-1997 20.8125 27.3717
09-Sep-1997 20.6875 28.4586
10-Sep-1997 20.3750 28.7554
11-Sep-1997 20.6875 29.3210
12-Sep-1997 20.6250 29.4042
15-Sep-1997 20.6875 28.8123
16-Sep-1997 20.1250 28.0267
17-Sep-1997 20.0625 27.7229
18-Sep-1997 20.1250 27.2788
19-Sep-1997 19.9375 27.3049
22-Sep-1997 19.0000 27.7551
23-Sep-1997 19.1250 28.0379
24-Sep-1997 19.2500 27.8009
25-Sep-1997 19.4375 28.3350
26-Sep-1997 19.5000 28.2674
29-Sep-1997 19.2500 29.3704
30-Sep-1997 19.3125 29.1437
01-Oct-1997 19.8125 29.0786
02-Oct-1997 20.1250 29.1159
03-Oct-1997 20.0000 29.1076
06-Oct-1997 19.8750 30.0363
07-Oct-1997 20.0000 30.0350
08-Oct-1997 19.9375 30.8638
09-Oct-1997 19.9375 30.5108
<PAGE>
10-Oct-1997 20.0625 30.4874
13-Oct-1997 20.5625 30.9402
14-Oct-1997 21.0000 30.9407
15-Oct-1997 21.5625 30.8062
16-Oct-1997 21.5000 30.8424
17-Oct-1997 21.5000 30.6799
20-Oct-1997 21.5000 30.9621
21-Oct-1997 21.5000 31.1041
22-Oct-1997 21.5000 30.9959
23-Oct-1997 21.2500 31.0015
24-Oct-1997 21.1250 30.8345
27-Oct-1997 19.6250 29.1389
28-Oct-1997 19.9375 26.1148
29-Oct-1997 20.3750 28.0717
30-Oct-1997 20.1875 27.1087
31-Oct-1997 20.0000 27.1985
03-Nov-1997 20.2500 28.0723
04-Nov-1997 20.2500 27.4138
05-Nov-1997 20.3750 28.0834
06-Nov-1997 20.0000 28.0839
07-Nov-1997 19.7500 28.0030
10-Nov-1997 19.8125 27.1293
11-Nov-1997 19.7500 27.6404
12-Nov-1997 18.9375 26.7703
13-Nov-1997 18.9375 27.0144
14-Nov-1997 19.5625 27.0103
17-Nov-1997 20.1250 28.3894
18-Nov-1997 19.3750 27.6749
19-Nov-1997 19.0625 27.0531
20-Nov-1997 19.6250 26.9287
21-Nov-1997 20.4375 26.9393
24-Nov-1997 20.2500 26.5516
25-Nov-1997 20.1250 26.6396
26-Nov-1997 20.4375 26.9471
27-Nov-1997 20.4375 27.4148
28-Nov-1997 20.4375 27.4150
01-Dec-1997 20.3750 28.0920
02-Dec-1997 20.4375 28.2494
03-Dec-1997 21.1250 28.2758
04-Dec-1997 22.0000 28.2480
05-Dec-1997 22.1875 28.1666
08-Dec-1997 22.0000 28.2106
09-Dec-1997 21.6250 28.1845
10-Dec-1997 21.8125 27.5892
11-Dec-1997 21.1250 26.9777
12-Dec-1997 21.1250 26.9423
15-Dec-1997 21.5000 27.0561
16-Dec-1997 21.5000 27.6960
17-Dec-1997 21.0000 28.0800
<PAGE>
18-Dec-1997 21.0625 27.9114
19-Dec-1997 21.0625 27.9271
22-Dec-1997 21.4375 26.8411
23-Dec-1997 21.6875 27.4813
24-Dec-1997 21.6250 26.7177
25-Dec-1997 21.6250 26.7177
26-Dec-1997 21.6250 26.9970
29-Dec-1997 21.6250 27.4450
30-Dec-1997 21.5000 27.9867
31-Dec-1997 21.6250 27.9595
01-Jan-1998 21.6250 27.9595
02-Jan-1998 21.7500 27.8912
05-Jan-1998 21.6875 27.4173
06-Jan-1998 21.6875 27.1265
07-Jan-1998 21.6250 26.7408
08-Jan-1998 21.3125 26.3480
09-Jan-1998 21.0000 26.3513
12-Jan-1998 20.6250 24.1701
13-Jan-1998 20.7500 24.7965
14-Jan-1998 20.7500 24.3692
15-Jan-1998 20.5000 23.7824
16-Jan-1998 20.8750 23.6647
19-Jan-1998 20.8750 24.2587
20-Jan-1998 21.0000 24.5273
21-Jan-1998 20.5000 24.7640
22-Jan-1998 19.9375 24.0968
23-Jan-1998 20.3750 24.1301
26-Jan-1998 20.3750 24.0398
27-Jan-1998 20.3125 24.0196
28-Jan-1998 20.3125 24.0456
29-Jan-1998 20.5000 24.6010
30-Jan-1998 20.6875 24.5535
02-Feb-1998 21.2500 25.2886
03-Feb-1998 21.7500 24.7820
04-Feb-1998 21.2500 24.3088
05-Feb-1998 20.6875 24.5120
06-Feb-1998 20.5000 24.5005
09-Feb-1998 20.4375 24.2115
10-Feb-1998 20.6250 24.0020
11-Feb-1998 20.1875 24.2446
12-Feb-1998 20.0000 24.2347
13-Feb-1998 20.4375 24.2056
16-Feb-1998 20.4375 24.3206
17-Feb-1998 20.8750 24.6541
18-Feb-1998 20.6250 25.1201
19-Feb-1998 20.5000 24.9971
20-Feb-1998 20.3750 24.9791
23-Feb-1998 20.6250 26.1139
24-Feb-1998 20.8750 25.5643
<PAGE>
25-Feb-1998 20.6250 24.7525
26-Feb-1998 20.3125 24.5185
27-Feb-1998 20.1875 24.5280
02-Mar-1998 20.6875 25.3869
03-Mar-1998 20.8750 25.2754
04-Mar-1998 20.8125 24.6928
05-Mar-1998 20.7500 23.9542
06-Mar-1998 20.9375 23.9351
09-Mar-1998 21.0625 25.4226
10-Mar-1998 21.6875 26.1089
11-Mar-1998 21.8125 26.0843
12-Mar-1998 21.8750 26.1292
13-Mar-1998 21.8125 26.1644
16-Mar-1998 21.8750 25.7370
17-Mar-1998 21.8125 26.2541
18-Mar-1998 21.7500 25.9258
19-Mar-1998 21.9375 26.0864
20-Mar-1998 21.9375 26.0373
23-Mar-1998 21.5000 26.6315
24-Mar-1998 21.1250 26.2702
25-Mar-1998 21.3750 26.6075
26-Mar-1998 22.9375 26.5290
27-Mar-1998 23.0625 26.4476
30-Mar-1998 22.6875 26.3747
31-Mar-1998 22.9375 26.2888
01-Apr-1998 23.6250 26.6512
02-Apr-1998 23.7500 26.5602
03-Apr-1998 24.2500 26.4305
06-Apr-1998 24.0000 26.9144
07-Apr-1998 23.8125 26.5961
08-Apr-1998 23.5000 26.5823
09-Apr-1998 23.1875 27.5553
10-Apr-1998 23.1875 27.5553
13-Apr-1998 23.5000 28.1190
14-Apr-1998 23.8125 27.8495
15-Apr-1998 23.9375 28.1549
16-Apr-1998 23.9375 28.1396
17-Apr-1998 24.0000 28.1321
20-Apr-1998 24.0000 28.2642
21-Apr-1998 24.1250 27.5891
22-Apr-1998 24.1250 26.7305
23-Apr-1998 23.7500 26.9383
24-Apr-1998 23.6250 26.9037
27-Apr-1998 23.1250 26.5070
28-Apr-1998 23.3750 27.1719
29-Apr-1998 23.3750 27.2723
30-Apr-1998 23.5625 27.2686
01-May-1998 23.6250 27.3062
04-May-1998 23.8125 28.9142
<PAGE>
05-May-1998 23.8750 29.2313
06-May-1998 23.5625 29.0803
07-May-1998 23.3125 28.6154
08-May-1998 23.3125 28.6762
11-May-1998 23.3125 28.9391
12-May-1998 23.3750 28.9087
13-May-1998 23.2500 29.8911
14-May-1998 23.2500 29.8701
15-May-1998 23.1250 29.8767
18-May-1998 23.1250 29.6634
19-May-1998 23.0625 29.5085
20-May-1998 22.8750 29.5754
21-May-1998 22.8750 30.6286
22-May-1998 22.6875 30.7013
25-May-1998 22.6875 31.4092
26-May-1998 22.6875 31.7879
27-May-1998 22.0000 30.7993
28-May-1998 22.0000 30.2742
29-May-1998 22.1250 30.2372
01-Jun-1998 21.8125 30.1712
02-Jun-1998 21.6875 30.1934
03-Jun-1998 22.4375 31.2931
04-Jun-1998 22.3750 31.4517
05-Jun-1998 22.3750 31.4277
08-Jun-1998 22.3125 32.0507
09-Jun-1998 22.8125 31.8118
10-Jun-1998 22.7500 31.4289
11-Jun-1998 22.8750 30.8819
12-Jun-1998 22.6875 30.7480
15-Jun-1998 22.2500 29.7268
16-Jun-1998 22.3750 30.3646
17-Jun-1998 22.2500 31.2030
18-Jun-1998 22.6875 31.4261
19-Jun-1998 23.1250 31.5471
22-Jun-1998 23.1250 31.6557
23-Jun-1998 23.0625 31.3556
24-Jun-1998 23.4375 32.4041
25-Jun-1998 23.6875 32.7513
26-Jun-1998 23.7500 32.6704
29-Jun-1998 23.7500 32.8349
30-Jun-1998 23.8750 32.0362
01-Jul-1998 23.8750 31.9180
02-Jul-1998 23.9375 32.0933
03-Jul-1998 23.9375 32.1200
06-Jul-1998 24.0000 32.1568
07-Jul-1998 23.9375 31.7907
08-Jul-1998 24.0000 31.4280
09-Jul-1998 24.2500 31.1531
10-Jul-1998 24.3125 31.1826
<PAGE>
13-Jul-1998 24.7500 31.3708
14-Jul-1998 24.7500 32.0426
15-Jul-1998 24.9375 31.9030
16-Jul-1998 24.9375 31.6506
17-Jul-1998 24.8125 31.6376
20-Jul-1998 25.0000 32.5679
21-Jul-1998 24.8125 32.5032
22-Jul-1998 24.9375 33.4199
23-Jul-1998 24.8125 33.1244
24-Jul-1998 25.0000 33.2230
27-Jul-1998 25.1875 33.8065
28-Jul-1998 24.8125 33.4993
29-Jul-1998 24.6250 33.1950
30-Jul-1998 24.6875 33.0580
31-Jul-1998 24.8750 33.1079
03-Aug-1998 24.5625 32.1944
04-Aug-1998 24.6875 32.0828
05-Aug-1998 24.4375 31.1623
06-Aug-1998 25.0625 31.7367
07-Aug-1998 25.0625 31.4688
10-Aug-1998 25.0625 34.1729
11-Aug-1998 24.2500 33.3941
12-Aug-1998 25.0000 33.9669
13-Aug-1998 25.0000 33.1142
14-Aug-1998 24.8125 33.1265
17-Aug-1998 25.0000 32.1955
18-Aug-1998 25.1250 32.2030
19-Aug-1998 25.1250 32.2129
20-Aug-1998 25.0000 32.0324
21-Aug-1998 24.5625 31.9986
24-Aug-1998 24.7500 30.2896
25-Aug-1998 25.0000 30.4070
26-Aug-1998 24.8750 29.4375
27-Aug-1998 23.7500 27.8817
28-Aug-1998 23.8125 27.3589
31-Aug-1998 23.2500 27.8236
01-Sep-1998 23.4375 26.8401
02-Sep-1998 23.5625 26.4745
03-Sep-1998 22.8125 25.6580
04-Sep-1998 22.8125 25.7929
07-Sep-1998 22.8125 26.3337
08-Sep-1998 25.0000 27.6774
09-Sep-1998 25.6250 27.5844
10-Sep-1998 25.3750 26.3067
11-Sep-1998 25.8750 26.3453
14-Sep-1998 26.0625 28.0983
15-Sep-1998 26.0000 27.3762
16-Sep-1998 26.2500 27.8401
17-Sep-1998 26.1875 26.9986
<PAGE>
18-Sep-1998 26.3750 27.0950
21-Sep-1998 26.1250 27.1235
22-Sep-1998 26.1250 27.0959
23-Sep-1998 25.8750 27.2371
24-Sep-1998 26.0625 27.1526
25-Sep-1998 25.8750 27.0724
28-Sep-1998 25.8750 26.2177
29-Sep-1998 25.5000 26.2154
30-Sep-1998 25.6250 26.2138
01-Oct-1998 24.8750 24.7170
02-Oct-1998 25.6250 24.2739
05-Oct-1998 25.5000 24.2648
06-Oct-1998 24.8750 22.3493
07-Oct-1998 24.5000 21.2681
08-Oct-1998 24.1875 19.7202
09-Oct-1998 24.1250 19.8211
12-Oct-1998 25.0000 19.7442
13-Oct-1998 25.0000 20.9765
14-Oct-1998 24.9375 20.8782
15-Oct-1998 24.6875 21.5273
16-Oct-1998 24.9375 21.5430
19-Oct-1998 24.9375 21.6579
20-Oct-1998 25.1875 21.9398
21-Oct-1998 24.5625 21.7084
22-Oct-1998 24.8125 22.3148
23-Oct-1998 24.8750 22.8404
26-Oct-1998 24.9375 23.1623
27-Oct-1998 24.8125 23.4128
28-Oct-1998 24.8750 23.2206
29-Oct-1998 24.8125 22.6404
30-Oct-1998 24.8125 22.7865
02-Nov-1998 25.0625 22.6654
03-Nov-1998 24.9375 22.6673
04-Nov-1998 25.0625 22.7324
05-Nov-1998 24.7500 22.3360
06-Nov-1998 24.8750 22.2933
09-Nov-1998 24.9375 21.3255
10-Nov-1998 24.3125 21.0159
11-Nov-1998 24.6250 21.4786
12-Nov-1998 24.5000 21.2156
13-Nov-1998 24.1250 21.4119
16-Nov-1998 23.9375 21.6493
17-Nov-1998 24.2500 22.5018
18-Nov-1998 24.3750 22.7891
19-Nov-1998 24.5000 23.3598
20-Nov-1998 24.3125 23.2399
23-Nov-1998 24.2500 23.9220
24-Nov-1998 24.0625 24.9572
25-Nov-1998 24.1875 24.9638
<PAGE>
26-Nov-1998 24.1875 25.0145
27-Nov-1998 24.1875 24.7312
30-Nov-1998 24.0625 25.2650
01-Dec-1998 24.3750 24.6679
02-Dec-1998 24.5625 24.4886
03-Dec-1998 24.5625 24.7841
04-Dec-1998 24.5625 24.8036
07-Dec-1998 24.5000 25.7322
08-Dec-1998 24.6875 25.7566
09-Dec-1998 24.5625 25.7177
10-Dec-1998 24.1250 25.4990
11-Dec-1998 28.1250 25.5072
14-Dec-1998 28.3750 24.7647
15-Dec-1998 28.5000 24.3497
16-Dec-1998 28.7500 24.2395
17-Dec-1998 28.6250 24.3470
18-Dec-1998 28.6875 24.3607
21-Dec-1998 28.6875 25.6675
22-Dec-1998 28.2500 26.1926
23-Dec-1998 28.4375 26.5224
24-Dec-1998 28.4375 27.1403
25-Dec-1998 28.4375 27.1403
28-Dec-1998 28.5625 27.0954
29-Dec-1998 28.5625 27.0334
30-Dec-1998 28.5000 26.8404
31-Dec-1998 28.7500 26.5625
01-Jan-1999 28.7500 26.5625
04-Jan-1999 28.8750 29.1380
05-Jan-1999 28.8750 28.9977
06-Jan-1999 28.8750 29.6294
07-Jan-1999 29.0625 28.6268
08-Jan-1999 29.0625 28.5134
11-Jan-1999 28.8750 28.7084
12-Jan-1999 28.8750 28.7566
13-Jan-1999 28.6250 27.1062
14-Jan-1999 28.6250 27.4888
15-Jan-1999 28.8750 27.4034
18-Jan-1999 28.8750 28.3861
19-Jan-1999 28.7500 28.1657
20-Jan-1999 28.6250 29.2663
21-Jan-1999 28.6875 28.5026
22-Jan-1999 28.3750 28.4996
25-Jan-1999 28.4375 27.5450
26-Jan-1999 28.5000 27.4581
27-Jan-1999 28.4375 28.0755
28-Jan-1999 28.5000 27.9618
29-Jan-1999 28.6250 27.9782
01-Feb-1999 28.5625 29.0523
02-Feb-1999 28.5000 28.7012
<PAGE>
03-Feb-1999 28.5000 28.3385
04-Feb-1999 28.5625 28.6375
05-Feb-1999 28.8750 28.5594
08-Feb-1999 28.6250 28.4570
09-Feb-1999 28.6250 28.3794
10-Feb-1999 28.5000 28.1911
11-Feb-1999 28.6250 28.5442
12-Feb-1999 28.4375 28.6417
15-Feb-1999 28.4375 29.5791
16-Feb-1999 28.5000 30.0067
17-Feb-1999 28.7500 29.4115
18-Feb-1999 28.8750 29.3830
19-Feb-1999 28.8125 29.3429
22-Feb-1999 28.8125 30.2932
23-Feb-1999 28.8750 30.7675
24-Feb-1999 29.1250 30.7196
25-Feb-1999 29.1250 30.9411
26-Feb-1999 29.3125 30.9693
01-Mar-1999 29.4375 31.5308
02-Mar-1999 29.0625 31.5294
03-Mar-1999 29.1250 32.9088
04-Mar-1999 29.2500 33.7429
05-Mar-1999 29.3750 33.8025
08-Mar-1999 29.1250 33.5315
09-Mar-1999 29.6250 32.9262
10-Mar-1999 29.5000 32.8026
11-Mar-1999 29.7500 33.7572
12-Mar-1999 29.7500 33.7536
15-Mar-1999 29.8125 33.7559
16-Mar-1999 29.5000 33.6910
17-Mar-1999 29.6250 33.8830
18-Mar-1999 29.6250 33.6605
19-Mar-1999 29.6250 33.6497
22-Mar-1999 29.6875 34.4877
23-Mar-1999 29.6875 34.4496
24-Mar-1999 29.6875 34.0645
25-Mar-1999 29.6875 34.5927
26-Mar-1999 29.6875 34.6151
29-Mar-1999 29.6875 35.2689
30-Mar-1999 29.8125 34.9949
31-Mar-1999 30.1250 35.1226
01-Apr-1999 29.9375 35.1012
02-Apr-1999 29.9375 35.0517
05-Apr-1999 30.1875 35.0747
06-Apr-1999 30.3750 35.1095
07-Apr-1999 30.1250 35.1413
08-Apr-1999 30.0625 36.0274
09-Apr-1999 30.3750 36.0519
12-Apr-1999 30.4375 35.8282
<PAGE>
13-Apr-1999 30.3750 36.8397
14-Apr-1999 30.6250 36.8375
15-Apr-1999 30.8125 37.4193
16-Apr-1999 30.6875 37.4899
19-Apr-1999 30.8125 37.8632
20-Apr-1999 30.5625 37.8025
21-Apr-1999 30.5625 37.8021
22-Apr-1999 30.6875 39.0110
23-Apr-1999 30.6250 38.9618
26-Apr-1999 30.6250 38.2900
27-Apr-1999 30.6875 37.0916
28-Apr-1999 30.5625 36.1039
29-Apr-1999 30.5625 36.1896
30-Apr-1999 30.4375 36.2372
03-May-1999 30.5000 37.9555
04-May-1999 30.6250 38.0832
05-May-1999 30.6875 37.9535
06-May-1999 30.8125 38.7714
07-May-1999 30.8125 38.6417
10-May-1999 31.6250 38.0995
11-May-1999 32.2500 37.9413
12-May-1999 32.6250 37.5634
13-May-1999 32.2500 37.6468
14-May-1999 32.3750 37.9603
17-May-1999 32.1250 37.9208
18-May-1999 32.2500 36.4061
19-May-1999 32.0625 35.8886
20-May-1999 32.4375 35.8905
21-May-1999 32.5000 35.8180
24-May-1999 32.2500 34.0372
25-May-1999 32.2500 33.2976
26-May-1999 31.3750 34.0436
27-May-1999 31.5625 35.3536
28-May-1999 31.6875 35.4275
31-May-1999 31.6875 35.8366
01-Jun-1999 32.0000 36.1046
02-Jun-1999 31.5000 35.2285
03-Jun-1999 31.5000 35.0082
04-Jun-1999 31.0000 34.9948
07-Jun-1999 31.0000 35.4655
08-Jun-1999 30.9375 36.6623
09-Jun-1999 31.0000 38.7757
10-Jun-1999 31.0000 38.0628
11-Jun-1999 31.7500 38.0586
14-Jun-1999 31.7500 38.2475
15-Jun-1999 32.3750 38.2430
16-Jun-1999 32.8750 38.4496
17-Jun-1999 32.7500 39.1172
18-Jun-1999 33.1250 39.2053
<PAGE>
21-Jun-1999 33.1875 39.3386
22-Jun-1999 32.5625 39.1250
23-Jun-1999 31.5000 38.2859
24-Jun-1999 32.0000 38.4201
25-Jun-1999 32.4375 38.4989
28-Jun-1999 32.5000 39.7464
29-Jun-1999 32.3750 39.1006
30-Jun-1999 31.5000 39.0703
01-Jul-1999 31.6875 40.0404
02-Jul-1999 31.3125 39.9921
05-Jul-1999 31.3125 38.8655
06-Jul-1999 31.5625 39.6371
07-Jul-1999 31.5000 39.8146
08-Jul-1999 31.6250 39.5916
09-Jul-1999 31.8125 39.5800
12-Jul-1999 31.5000 40.4625
13-Jul-1999 31.6250 40.4395
14-Jul-1999 30.5625 40.1595
15-Jul-1999 30.0000 41.5023
16-Jul-1999 30.2500 41.4553
19-Jul-1999 30.7500 42.5247
20-Jul-1999 30.2500 42.0544
21-Jul-1999 30.6250 41.2387
22-Jul-1999 30.6250 41.2922
23-Jul-1999 30.5625 41.0978
26-Jul-1999 30.3750 39.3855
27-Jul-1999 30.5000 39.0961
28-Jul-1999 30.6875 38.7781
29-Jul-1999 30.5000 36.8223
30-Jul-1999 30.5000 36.7821
02-Aug-1999 30.4375 35.1589
03-Aug-1999 30.1875 35.3875
04-Aug-1999 30.0625 34.2496
05-Aug-1999 29.8125 33.7234
06-Aug-1999 29.8125 33.7813
09-Aug-1999 29.5000 34.6009
10-Aug-1999 28.2500 33.3589
11-Aug-1999 28.5625 33.6596
12-Aug-1999 29.0000 34.8562
13-Aug-1999 29.1250 34.6103
16-Aug-1999 29.0625 35.8911
17-Aug-1999 29.2500 35.1107
18-Aug-1999 29.5000 34.5786
<PAGE>
EXHIBIT 99(b)(9)
================================================================================
Presentation to the Special Committee
Regarding Project Alpha
August 18, 1999
[LOGO] Merrill Lynch
<PAGE>
Table of Contents
================================================================================
1. Offer by Discount Investment Corporation
2. Valuation
o Summary
o Premiums and Discounts
o Public Market Overview
3. Exhibits
- ------------------------------------------------------------[LOGO] Merrill Lynch
2
<PAGE>
================================================================================
Offer by
Discount Investment Corporation
================================================================================
<PAGE>
Offer by Discount Investment Corporation
================================================================================
IDB Group Structure
---------------------------
IDB Holding Corporation
---------------------------
|
---------------------------
| |
--------------- ---------------
IDB Development Israel Discount
Corporation Bank
--------------- ---------------
|
----------------
| 71.7% | 61.1%
| |
------------ ------------
Discount Clal
Investment (Israel)
Corporation
------------ ------------
|
| 81.4%
------------
PEC Israel
Economic
Corporation
------------
o IDB Development Corporation ("IDB") is a controlling shareholder of
Discount Investment Corporation ("DIC")
o On January 7, 1999, DIC acquired 81.4% of PEC Israel Economic Corporation
("PEC") from IDB by way of an exchange of shares (IDB received 1.1642
shares of DIC for each share of PEC with the total market value as of that
date of approximately $498 million) and from that date PEC has become a
subsidiary of DIC
o PEC and DIC, historically sister companies, hold a diversified portfolio
of equity investments in Israeli companies
o PEC and DIC have numerous cross shareholdings in Israeli public and
private companies as a result of their co-investment strategy
o IDB intends to rationalise its holdings by taking PEC private and merging
it into a 100% subsidiary of DIC
- ------------------------------------------------------------[LOGO] Merrill Lynch
4
<PAGE>
Offer by Discount Investment Corporation
================================================================================
o The cash offer for all outstanding shares of PEC not already owned by IDB
or its affiliates is announced by IDB on September 8, 1998
o Board of Directors of DIC approves an exchange of 81.35% of PEC shares
owned by IDB for newly issued shares of DIC on October 15, 1998. The
exchange is effected as of January 7, 1999
o Acquisition of at least 8.65% of total outstanding shares will allow IDB
to effect a Short-Form merger
-------------------------------------------------------------------
Summmary of Financial Terms(1)
-------------------------------------------------------------------
December 11, 1998 August 18, 1999
----------------- ---------------
Cash Offer (per share)(2) $30.00 $36.50
% Increase from original offer ($25.50) 18% 43%
Premium/(Discount) to market price:
- One day before the offer(3) 32% 25%
- One week before the offer(4) 28% 29%
- One month before the offer(5) 20% 21%
- 52-week high(6) 13% 7%
- 52-week low(7) 50% 60%
- Premium to 3-month average of
$21.02 prior to (03/25/98)(8) 43% 74%
Implied Company Value(9) $551m $670m
Implied Offer Value (assumes 100%
acceptance) $103m $125m
-------------------------------------------------------------------
(1) Stock Prices from Bloomberg.
(2) The offer as of 08/18/99 is at an approximately 21% premium to the
offer as of 12/11/98.
(3) Percentage change one day before the offer for trading dates ended
09/04/98 and 08/17/99, respectively.
(4) Percentage change one week before the offer for trading dates ended
09/01/98 and 08/10/99, respectively.
(5) Percentage change one month before the offer for trading dates ended
08/07/98 and 07/20/99, respectively.
(6) Percentage change for 52-week high of $26.50 on 09/18/98 and
$34.25 on 06/21/99, respectively.
(7) Percentage change for 52-week low of $19.94 on 01/22/94 and
$22.75 on 09/03/98, respectively.
(8) On 3/25/98, IDB Holdings announced an acquisition of 9.5% of PEC
in the public market at a price of $25.50. Simultaneously, IDB indicated
its intention to acquire the remaining shares of PEC.
(9) Implied company value based on $30.00 and $36.50 a share, respectively.
- ------------------------------------------------------------[LOGO] Merrill Lynch
5
<PAGE>
================================================================================
Valuation
================================================================================
<PAGE>
Summary
================================================================================
Methodology
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PEC Economic Corporation
Net Asset Value Analysis(1) Investment Portfolio
- -----------------------------------------------------------------------------------------------------------------------------------
7 Public 3 Private Other
Valuation Methodology Key Analyses Companies Companies Holdings (3)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Analysis of research coverage |_| Opinion of analysis (PEC overall & key holdings) X X
|_| Valuation/target values
Analysis of public market prices |_| Current Prices X X(2)
|_| 52 week high/low
Analysis of publicly traded |_| Current trading valuations for relevant peer
comparables group
|_| Review of trading values as a multiple of past/ X X
projected results
Analysis of acquisition transactions for |_| Analysis of pricing of relevant transtactions X X
comparable companies |_| Review of multiples paid
Analysis of equity transactions in |_| Valuation achieved in recent transcations X X
respective companies
(DCF analysis) (4) |_| Projections of financial performance
|_| Present values of projected cash flows
- Explicit projections
- Terminal value
Historical cost/carrying value |_| Determination of cost/carrying values of investments
|_| Unrealized capital gains
|_| Liquidation value analysis X X X
===================================================================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
Market Discounts for comparable |_| US and Emerging Markets closed end fund
companies discounts to NAV
|_| Discounts to NAV of Isreaeli Holding companies
Market Premiums pain in comparable |_| Analysis of minority "buyouts" in "going
acquisistion transcations private" transactions
|_| Consider control premiums as appropriate
===================================================================================================================================
</TABLE>
(1) In addition to performing NAV analysis of PEC's holdings, Merrill Lynch
analyzed major assets and liabilities on the holding company level.
(2) For public companies.
(3) Includes public and private holdings.
(4) Merrill Lynch has been informed by PEC that it did not possess and could
not provide access to current financial forecasts for any of the companies
in PEC's investment portfolio. Therefore, we have not been able to conduct
the DCF analyses.
- -----------------------------------------------------------[LOGO] Merrill Lynch
8
<PAGE>
Summary
- --------------------------------------------------------------------------------
Most Significant Direct Holdings
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
PEC Israel Economic Discount Investment IDB(1)
Corporation Corporation Holdings
------------------- ------------------- -------------
% of Equity % of Equity % of Equity
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Private Companies
|_| Cellcom Israel 12.5% 12.5% 25.0%
|_| Tevel Israel International Communication 23.7% 24.8% 48.5%
|_| El-Yam Ships and Holdings 10.1% 14.3% 24.4%
Public Companies
|_| Property and Building Corporation 41.6% 15.2% 56.8%
|_| Super-Sol(2) 20.1% 24.9% 46.6%
|_| Elron Electronics Industries 14.5% 28.2% 42.7%
|_| Gilat Satellite Networks 3.7% 0.9% 4.6%
|_| Tambour (3) 43.3% 42.3% 86.8%
|_| Scitex Corporation 6.6% 6.6% 26.2%
|_| United Pan European Communications 0.6% 0.6% 1.2%
============================================================================================================================
</TABLE>
Source: PEC Israel Economic Corporation
(1) Includes total holdings of PEC Israel Economic Corporation, IDB Holding
and their affiliates.
(2) Includes the proportionate interest of IDB Group by the ownership of
Super-Sol held by subsidiaries of Super-Sol.
(3) Includes the proportionate interest of IDB Group by the ownership of
Tambour held by subsidiaries of Tambour.
- -----------------------------------------------------------[LOGO] Merrill Lynch
9
<PAGE>
Summary
- --------------------------------------------------------------------------------
Assumptions
|_| All public market share prices as of Monday, August 16, 1999
|_| Share ownership in different companies as provided by PEC management and
SEC filings
|_| 1999 projections based on discussions and correspondence with management
and Merrill Lynch estimates or obtained from equity research reports
|_| Net debt estimates as of last publicly available financial statements
|_| Effective tax rate on estimated gains assumed at 25.0% for all companies
|_| Exchange rate used: US$1.00 = NIS 4.20 as of August 16, 1999
|_| Outstanding shares of PEC: 18,362,188
- -----------------------------------------------------------[LOGO] Merrill Lynch
10
<PAGE>
Summary
================================================================================
Estimated Value as of August 18, 1999
<TABLE>
<CAPTION>
--------------------- ----------------------- --------------------------
Value of Value of PEC Estimated Contribution per
PEC's Interest Share(1) Share as a % of Total
--------------------- ----------------------- --------------------------
High Low High Low High Low
--------------------- ----------------------- --------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Large Public Holdings $560 $475 $30.50 $25.87 47.1% 46.3%
Large Private Holdings $495 $417 $26.96 $22.71 41.6% 40.6%
Total Other Public Holdings (2) $ 84 $4.56 7.0% 8.2%
Total Other Private Holdings $ 50 $2.70 4.2% 4.8%
Other Net Assets (3) $ 1 $0.07 0.1% 0.1%
------------------------ ------------------------ -------- -------
Total Pre-Tax Value of PEC Holdings $1,190 $1,027 $64.79 $55.91 100.0% 100.0%
======== =======
Less Taxes (4) $234 $193 $12.73 $10.51
---- ---- ------ ------
Sub-Total $956 $834 $52.06 $45.41
---- ---- ------ ------
Less: Closed End Fund Discount 25.00%
Estimated Value $717 $625 $39.05 $34.06
---- ---- ------ ------
</TABLE>
(1) Assumes 18,352,188 PEC shares outstanding.
(2) Assumes share prices as of August 25, 1995.
(3) Net debt plus outstanding loan to Celleron plus other assets and
liabilities of PEC Israel.
(4) Assumes 25.0% effective tax rate on estimated gains for all companies.
- -----------------------------------------------------------[LOGO] Merrill Lynch
11
<PAGE>
Summary
================================================================================
Sensitivity Analysis
|_| 5.0% increase in effective tax rate on estimated gains results in
approximately $1.91 (at the top end of the range) and $1.58 (at the
bottom end of the range) reduction in valuation per share of PEC
|_| 5.0% increase in closed-end fund market discount to NAV results in
approximately $2.60 (at the top end of the range) and $2.27 (at the
bottom end of the range) reduction in valuation per share of PEC
|_| $500 million increase in valuation of Cellcom results in
approximately $1.93 increase in valuation per share PEC
- -----------------------------------------------------------[LOGO] Merrill Lynch
12
<PAGE>
================================================================================
Premiums and Discounts
================================================================================
<PAGE>
Premiums and Discounts
================================================================================
Analysis of Premiums in "Going Private" Transactions
|_| Reviewed completed "going private" transactions in the range of
$100-$500 million from 1995 to the present
--------------------------------------------------------------------
Offer Price as a Premium/(Discount) to Target Share Price at
Indicated Period Prior to Announcement
--------------------------------------------------------------------
1 Day 1 Week 1 Month
-------------- -------------- --------------
Maximum 63.9% 78.9% 88.2%
Mean 24.2% 28.2% 33.6%
Median 21.8% 23.9% 28.1%
Minimum (6.1%) (10.3%) (2.7%)
--------------------------------------------------------------------
|_| Reviewed completed "going private" transactions in which less than
25.0% shareholdings were acquired
--------------------------------------------------------------------
Offer Price as a Premium/(Discount) to Target Share Price at
Indicated Period Prior to Announcement
--------------------------------------------------------------------
1 Day 1 Week 1 Month
-------------- -------------- --------------
Maximum 52.0% 50.0% 77.8%
Mean 19.7% 23.7% 30.0%
Median 11.3% 25.5% 28.1%
Minimum (6.1%) 1.7% 3.6%
--------------------------------------------------------------------
Source: SDC database, August 1999
- -----------------------------------------------------------[LOGO] Merrill Lynch
14
<PAGE>
Premiums and Discounts
================================================================================
Holding Company/Closed-End Fund Discounts
--------------------------------------------------------------
Appropriate holding company discount is approximately 25.0%
or possibly higher in the case of Israeli holding companies
--------------------------------------------------------------
|_| Morgan Stanley Emerging Markets Fund (MSF) is currently trading at a
(21.26%) discount to its NAV(1)
|_| Foreign and Colonial Emerging Middle East Fund (EME) is currently
trading at a (19.06%) discount to its NAV (2)
|_| First Israel Fund (ISL) is trading at a (14.12%) discount to its
NAV(1)
|_| Koor Industries is trading at a (25.40%) discount to its NAV(3)
|_| Ampal-American Israel Corporation is trading at a (34.00%) discount
to its NAV(4)
(1) Merrill Lynch Mutual Fund database as of August 13, 1999.
(2) Merrill Lynch Mutual Fund database as of August 6, 1999.
(3) Merrill Lynch equity research as of May 25, 1999.
(4) Lehman Brothers equity research as of March, 1999.
- -----------------------------------------------------------[LOGO] Merrill Lynch
15
<PAGE>
Premiums and Discounts
================================================================================
PEC Historical Discounts (1)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
Investment Equity Analyst
Bank Report Date Estimated Pre-Tax NAV per Share Share Price Discount to NAV
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Lehman Brothers 12/03/98 $46.76 $24.560 (40.3%)
Lehman Brothers 11/19/98 45.10 24.250 (46.2)
Lehman Brothers 05/26/98 51.94 22.688 (56.3)
Lehman Brothers 03/27/98 51.10 23.063 (54.9)
Lehman Brothers 12/05/97 35.29 Conservative 22.188 (37.1)
38.16 Aggressive 22.188 (41.9)
Lehman Brothers 11/19/97 35.29 Conservative 19.063 (46.0)
38.16 Aggressive 19.063 (50.0)
Smith Barney 11/18/97 34.47 19.375 (43.8)
Lehman Brothers 09/12/97 36.41 Conservative 20.625 (43.4)
39.28 Aggressive 20.625 (47.5)
Smith Barney 09/03/97 34.15 20.625 (39.6)
Lehman Brothers 06/24/97 36.68 Conservative 23.625 (35.6)
38.59 Aggressive 23.625 (38.8)
Smith Barney 04/09/97 28.03 19.000 (32.2)
Lehman Brothers 09/04/96 23.03 Conservative 18.375 (20.2)
24.56 Aggressive 18.375 (25.2)
- --------------------------------------------------------------------------------------------------------
</TABLE>
Source: Publicly distributed research reports
(1) Research analysts valued the PEC's NAV under both aggressive and
conservative scenarios
- ------------------------------------------------------------[LOGO] Merrill Lynch
16
<PAGE>
================================================================================
Public Market Overview
================================================================================
<PAGE>
Public Market Overview
================================================================================
January 1997 to Present (1)
- --------------------------------------------------------------------------------
Daily Stock Price Performance
- --------------------------------------------------------------------------------
-----------------------------------
March 23, 1998
-----------------------------------
IDB Holdings acquired 9.5%
of PEC's outstanding shares
-----------------------------------
-----------------------------------
December 17, 1998
-----------------------------------
IDB offers $30.00 per share
to Minority shareholders
-----------------------------------
PEC Stock Price (US$)
[GRAPHIC OMITTED]
Volume
[GRAPHIC OMITTED]
(1) As of August 1999.
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<PAGE>
Public Market Overview
================================================================================
Share Price Performance Since the IDB Offer Announcement on September 8, 1998
[GRAPHIC OMITTED]
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
% Change
Companies 9/8/98(2) 12/9/98(2) 8/16/99(2) 9/8/98-4/16/99
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PEC Israel Economic
Corporation $25.00 $24.56 $29.06 16.3%
Elron Electronic Industries $14.48 $15.36 $23.62 58.6%
Tambour $1.30 $1.30 $1.74 33.8%
Gilat Satellite Networks $37.13 $56.25 $48.06 29.5%
Property and Building
Corporations $89.33 $78.72 $100.28 12.7%
Super-Sol $2.67 $2.37 $2.62 (8.7%)
Scitex Corporation $11.00 $10.29 $9.25 (15.9%)
- --------------------------------------------------------------------------------------------
</TABLE>
(1) Share prices in local currency; PEC Israel Economic Corporation, Scitex
Corporation and Gilat Satellite Networks quoted in U.S. dollars.
(2) Assumes exchange rate of NIS/US$ of 3.85, 4.18 and 4.10 on September
8, 1998, December 9, 1998 and August 16, 1999, respectively.
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<PAGE>
================================================================================
Exhibits
================================================================================
<PAGE>
================================================================================
Private Holdings
================================================================================
<PAGE>
Private Holdings
================================================================================
Cellcom Israel
<TABLE>
<CAPTION>
--------------- ------------------ -------------
Total Company PEC's % Interests PEC's Value
Valuation Range Valuation Range(6) Per Share(7)
--------------- ------------------ -------------
<S> <C> <C> <C>
Comparable Company Analysis
Enterprise Value/1998A EBITDA(1) $3,148-$2,658 $394-$332 $21.43-$18.09
Enterprise Value/1999E EBITDA(2) $2,686-$2,190 $336-$274 $18.29-$14.91
Enterprise Value per Subscriber(3) $2,583-$1,958 $323-$245 $17.58-$13.33
Enterprise Value/1998A EBITDA Growth(4) $2,658-$2,167 $332-$271 $18.09-$14.75
Enterprise Value/1999E EBITDA Growth(5) $2,412-$1,676 $302-$210 $16.42-$11.41
--------------- ------------------ -------------
Valuation Range $2,750-$2,250 $343-$281 $18.72-$15.32
--------------- ------------------ -------------
</TABLE>
(1) Based on Enterprise Value/1998A EBITDA multiple range of 13.0x-15.0x.
(2) Based on Enterprise Value/1999E EBITDA multiple range of 11.0x-13.0x.
Assumes half-year 1999 EBITDA is annualized to reflect a full year figure.
(3) Based on Enterprise Value of $2,000.0-$2,500.0 per subscriber.
(4) Based on Enterprise Value/1998A EBITDA/growth rate multiple of 1.0-1.3.
Assumes Cellcom Israel EBITDA projected growth rate of 10%.
(5) Based on Enterprise Value/1999E EBITDA/growth rate multiple of 0.9-1.2.
Assumes half-year 1999 EBITDA is annualized to reflect a full year figure.
Assumes Cellcom Israel EBITDA projected growth rate of 10%.
(6) Assumes PEC Israel Economic Corporation owns 12.5% of Cellcom Israel.
(7) Assumes 18,362,188 shares outstanding.
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<PAGE>
Private Holdings
================================================================================
Tevel Israel International Communication
<TABLE>
<CAPTION>
--------------- ------------------ ------------
Total Company PEC's % Interests PEC's Value
Valuation Range Valuation Range(7) Per Share(8)
--------------- ------------------ ------------
<S> <C> <C> <C>
Matav Comparable Company Analysis
Enterprise Value per Subscriber(1) $629 $149 $8.12
Enterprise Value/1998 EBITDA(2) $459 $109 $5.92
Adjusted Enterprise Value per Subscriber(3) $237 $56 $3.06
Adjusted Enterprise Value/1998 EBITDA(4) $144 $34 $1.86
Comparable Acquisition Analysis
Transaction Value per Subscriber in Gvanim Acquisition(5) $368 $87 $4.75
Transaction Value in TCI's Acquisition(6) $285 $68 $3.68
--------------- ------------------ ------------
Valuation Range $464-$421 $110-$100 $5.99-$5.45
--------------- ------------------ ------------
</TABLE>
(1) Based on Matav's Enterprise Value per Subscriber of $1,218.
(2) Based on Matav's Enterprise Value/1998 EBITDA multiple of 9.7x.
(3) Based on Matav's Adjusted Enterprise Value per Subscriber of $2,199.
Adjustment is made for stakes in Baraq and Partner valued at $270m per
June 1999 Warburg Dillon Read estimate.
(4) Based on Matav's Adjusted Enterprise Value/1998 EBITDA multiple of 5.4x.
Adjustment is made for stakes in Baraq and Partner valued at $270m per
June 1999 Warburg Dillon Read estimate.
(5) Based on $223 million acquisition of Gvanim (144,000 subscribers).
(6) Based on the acquisition of 23% of Tevel by UPC from TCI for a
consideration of $85.0 million.
(7) Assumes PEC Israel Economic Corporation owns 23.7% of Tevel Israel
International Communication.
(8) Assumes 18,362,188 shares outstanding.
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<PAGE>
Private Holdings
================================================================================
El-Yam Ships and Holdings(1)
<TABLE>
<CAPTION>
------------------ ------------------ ------------
Total Company PEC's % Interests PEC's Value
Valuation Range(6) Valuation Range(6) Per Share(7)
------------------ ------------------ ------------
<S> <C> <C> <C>
Market Value of IDB Holdings by El-Yam Ships and Holdings
Today's Value (8/16/99)(2) $384 $39 $2.11
90 Day Average(2) $391 $40 $2.15
Market Value of Shipping Business(3)
Est. value of ships/resale basis
Approx. value of outstanding business $0 $0 $0.00
Recent Block Trades of IDB Holdings
9.5% transaction with Goldman Sachs(4) $306 $31 $1.69
3.5% sale by DIC(5) $309 $31 $1.70
------------------ ------------------ ------------
Valuation Range $430-$370 $41-$37 $2.23-$2.02
------------------ ------------------ ------------
</TABLE>
(1) Assumes exchange rate of (NIS/US$) 4.20.
(2) Information from Bloomberg. Assumes 37.67 million shares outstanding.
(3) Assumes value of shipping business is fully offset by liabilities (as
represented by management).
(4) In February of 1998, Goldman Sachs and related entities bought 9.5% of IDB
Holding's outstanding shares.
(5) In April of 1998, DIC sold 3.5% of IDB Holding's outstanding shares.
(6) Assumes PEC Israel Economic Corporation owns 10.1% of EL-Yam Ships and
Holdings. EL-Yam Ships owns substantially all of the equity in El-Yam
Holdings, which in turn owns 37.1% in IDB Holdings.
(7) Assumes 18,362,188 shares outstanding.
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<PAGE>
Private Holdings
================================================================================
El-Yam Ships and Holdings
- --------------------------------------------------------------------------------
Daily Stock Price Performance
- --------------------------------------------------------------------------------
----------------------------------
IDB Holding Corporation(1)
----------------------------------
8/16/99 $27.44
30 Day Avg. $27.83
90 Day Avg. $28.00
1 Year Avg. $23.06
----------------------------------
IDB Stock Price (US$)
[GRAPHIC OMITTED]
Source: Datastream, August 1999
(1) Assumes exchange rate of (NIS/US$)4.20.
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<PAGE>
Private Holdings
================================================================================
Other Private Holdings (Dollars in thousands, except per share data)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Estimated
PEC's PEC's Carrying Holdings
Other Private Holdings Ownership Cost Value Value(7)
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Advent Israel Limited Partnership 5.4% 699 703 703
Aerogen 1.9% 879 400 879
Aviv Giladi 12.5% 1,261 1,261 1,261
Combact Diagnostic 2.3% 1,685 1,685 1,685
CosmoCom 4.7% 1,000 1,000 1,000
DEP (RDC) 16.7% 6,993 3,178 6,993
E,D,S,L Communications Ltd 6.7% 600 600 600
El Rad Analytical(1) 2.7% 1,001 1,001 4,000
Gemini Cap. Management 25.0% 146 0 146
Gemini Israel Fund L.P. 16.0% 5,194 5,141 5,194
Gemini Israel II LP 3.8% 836 719 836
General Engineers Limited(2) 100.0% 1,381 2,947 2,947
Given Imaging 3.3% 928 909 928
Global Village Telecom 5.4% 1,438 1,438 1,438
HTC Ltd 4.9% 1,264 1,264 1,264
Ken Software 9.2% 1,544 1,544 1,544
Mondex Israel/Mondex Services(3) 25.0% 3,395 0 0
New Check 6.3% 2,500 2,500 2,500
Orbital 1.3% 2,000 2,000 2,000
PAMOT Jersey US LP 3.3% 612 472 612
PEC Israel Finance Corporation 100.0% 161 0 161
Renaissance Fund 3.7% 4,004 4,004 4,004
SI-Wireless, Inc. 3.7% 200 200 200
Soreq Development Corporation(4) 25.0% 2,526 175 175
Teamworks, Ltd. 25.0% 1,000 1,000 1,000
Tel-Al Jerusalem Studios(5) 11.5% 810 2,021 4,200
Tradanet 30.0% 1,326 0 1,326
United Vocal(6) 12.6% 800 800 800
Weizman "Incubator" 16.7% 208 197 208
Wilcom 5.6% 1,055 892 1,000
------ ------ ------
Total 47,446 37,251 49,659
Total Per Share $2.58 $2.03 $2.70
- ----------------------------------------------------------------------------------------------
</TABLE>
(1) Estimated value of El Rad is based on management estimates.
(2) General Engineers Limited is a consolidated entity and does not have a
carrying value; however, in this analysis its carrying value is estimated
as the excess of its assets over its liabilities.
(3) Estimated value of Mondex is based on management estimates.
(4) Estimated value of Soreq is $175,000 based on management estimates.
(5) Estimated value of Tel-Al Jerusalem Studios is $4.2 million based on
management estimates.
(6) Estimated value of United Vocal is zero based on management estimates.
(7) Higher of PEC's current carrying value.
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<PAGE>
================================================================================
Public Holdings
================================================================================
<PAGE>
Public Holdings
================================================================================
Property and Building Corporation (Dollars in millions, except per share
data)(1)
<TABLE>
<CAPTION>
--------------- ------------------ ------------
Total Company PEC's % Interests PEC's Value
Valuation Range Valuation Range(2) Per Share(3)
--------------- ------------------ ------------
<S> <C> <C> <C>
Current Trading Price(08/16/99) $416 $173 $9.40
Historical Trading Analysis
52-Week High/Low $463 - $268 $192 - $112 $10.47 - $6.07
Net Asset Valuation(4) $425 $174 $9.48
--------------- ------------------ --------------
Valuation Range $433 - $409 $180 - $170 $9.80 - $9.26
--------------- ------------------ --------------
</TABLE>
(1) Assumes exchange rate of (NIS/US$) 4.20.
(2) Assumes PEC Israel Economic Corporation owns 41.6% of the diluted stock.
(3) Assumes 18,362,188 shares outstanding.
(4) Based on Professor Swary's independent report.
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<PAGE>
Public Holdings
================================================================================
Super-Sol (Dollars in millions, except per share data)(1)
<TABLE>
<CAPTION>
--------------- ------------------ ------------
Total Company PEC's % Interests PEC's Value
Valuation Range Valuation Range(2) Per Share(3)
--------------- ------------------ ------------
<S> <C> <C> <C>
Current Trading Price (08/16/99) $550 $110 $6.01
Historical Trading Analysis
52-Week High/Low $643 - $437 $129 - $88 $7.02 - $4.78
Comparable Company Analysis
LTM Sales(4) 0.65x - 0.45x $741 - $497 $149 - $100 $8.10 - $5.43
LTM EBITDA(4) 10.0x - 7.5x $605 - $441 $121 - $88 $6.62 - $4.81
Comparable Acquisition Analysis
LTM Sales(5) 0.80x - 0.50x $925 - $558 $186 - $112 $10.10 - $6.09
LTM EBITDA(5) 11.0x - 8.0x $675 - $474 $135 - $95 $7.34 - $5.17
--------------- ------------------ --------------
Valuation Range $598 - $498 $128 - $100 $6.81 - $5.45
--------------- ------------------ --------------
</TABLE>
(1) Assumes exchange rate of (NIS/US$) 4.20.
(2) Assumes PEC Israel Economic Corporation owns 20.1% of Super-Sol's diluted
stock.
(3) Assumes 18,362,188 shares outstanding.
(4) Based on "second tier" U.S. supermarket chain such as Food Lion;
Winn-Dixie; and the Israeli Supermarket chain Blue Square.
(5) Based on transactions in 1998 and 1999.
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<PAGE>
Public Holdings
================================================================================
Elron Electronic Industries (Dollars in millions, except per share data)(1)
<TABLE>
<CAPTION>
--------------- ------------------ ------------
Total Company PEC's % Interests PEC's Value
Valuation Range Valuation Range(2) Per Share(3)
--------------- ------------------ ------------
<S> <C> <C> <C>
Current Trading Price (08/16/99) $516 $72 $3.92
Historical Trading Analysis
52-Week High/Low $625 - $239 $87 - $33 $4.74 - $1.82
Net Asset Valuation Analysis(4)
15%-25% Discount to Pre-Tax NAV $451 - $345 $63 - $48 $3.43 - $2.62
--------------- ------------------ --------------
Valuation Range $538 - $430 $75 - $60 $4.08 - $3.27
--------------- ------------------ --------------
</TABLE>
(1) Assumes exchange rate of (NIS/US$) 4.20.
(2) Assumes PEC Israel Economic Corporation owns 13.9% of Elron Electronic
Industries diluted stock.
(3) Assumes 18,361,188 shares outstanding.
(4) NAV valuation based on Warburg research dated April 1999.
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<PAGE>
Public Holdings
================================================================================
Gilat Satellite Networks (Dollars in millions, except per share data)(1)
<TABLE>
<CAPTION>
--------------- ------------------ ------------
Total Company PEC's % Interests PEC's Value
Valuation Range Valuation Range(2) Per Share(3)
--------------- ------------------ ------------
<S> <C> <C> <C>
Current Trading Price (08/16/99) $1,090 $43 $2.32
Historical Trading Analysis
52-Week High/Low $1,521 - $719 $60 - $28 $3.24 - $1.54
Comparable Company Analysis
1999 EBITDA(4) 20.0x - 16.0x $1,388 - $1,116 $54 - $44 $2.96 - $2.38
1999 EPS(5) 25.0x - 20.0x $1,497 - $1,198 $59 - $47 $3.19 - $2.55
--------------- ------------------ --------------
Valuation Range $1,277 - $1,022 $50 - $40 $2.72 - $2.18
--------------- ------------------ --------------
</TABLE>
(1) Assumes exchange rate of (NIS/US$) 4.20.
(2) Assumes PEC Israel Economic Corporation owns 3.9% of Gilat Satellite
Networks diluted stock.
(3) Assumes 18,362,188 shares outstanding.
(4) Based on Scientific Atlantic and Standford Telecommunications.
(5) Based on EMS Technologies and Standford Telecommunications.
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<PAGE>
Public Holdings
================================================================================
Tambour (Dollars in millions, except per share data)(1)
<TABLE>
<CAPTION>
--------------- ------------------ ------------
Total Company PEC's % Interests PEC's Value
Valuation Range Valuation Range(2) Per Share(3)
--------------- ------------------ ------------
<S> <C> <C> <C>
Current Trading Price (08/16/99) $105 $46 $2.48
Historical Trading Analysis
52-Week High/Low $121 - $59 $52 - $26 $2.86 - $1.39
Comparable Company Analysis
LTM EBITDA 10.00x - 7.00x $149 - $98 $64 - $42 $3.50 - $2.31
1999 EBITDA 8.0x - 6.0x $162 - $117 $70 - $51 $3.82 - $2.75
Comparable Acquisition Analysis
LTM Sales 1.20x - 0.80x $158 - $99 $68 - $43 $3.72 - $2.33
LTM EBITDA 11.0x - 8.0x $165 - $115 $72 - $50 $3.90 - $2.71
--------------- ------------------ --------------
Valuation Range $116 - $93 $50 - $40 $2.72 - $2.18
--------------- ------------------ --------------
</TABLE>
(1) Assumes exchange rate of (NIS/US$) 4.20.
(2) Assumes PEC Israel Economic Corporation owns 43.3% of Tambour's stock.
(3) Assumes 18,362,188 shares outstanding.
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<PAGE>
Public Holdings
================================================================================
Scitex Corporation (Dollars in millions, except per share data)(1)
<TABLE>
<CAPTION>
--------------- ------------------ ------------
Total Company PEC's % Interests PEC's Value
Valuation Range Valuation Range(2) Per Share(3)
--------------- ------------------ ------------
<S> <C> <C> <C>
Current Trading Price (08/16/99) $398 $26 $1.43
Historical Trading Analysis
52-Week High/Low $632 - $247 $42 - $16 $2.27 - $0.89
Comparable Company Analysis
1999 EBITDA 9.5x - 6.5x $568 - $414 $38 - $27 $2.04 - $1.49
Comparable Acquisition Analysis
LTM EBITDA 11.0x - 9.0x $423 - $360 $28 - $24 $1.52 - $1.29
--------------- ------------------ --------------
Valuation Range $455 - $1.36 $30 - $25 $1.63 - $1.36
--------------- ------------------ --------------
</TABLE>
(1) Assumes exchange rate of (NIS/US$) 4.20.
(2) Assumes PEC Israel Economic Corporation owns 6.6% of Scitex Corporation's
diluted stock.
(3) Assumes 18,362,188 shares outstanding.
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<PAGE>
Public Holdings
================================================================================
United Pan European Communication (Dollars in millions, except per share data)
<TABLE>
<CAPTION>
--------------- ------------------ ------------
Total Company PEC's % Interests PEC's Value
Valuation Range Valuation Range(1) Per Share(2)
--------------- ------------------ ------------
<S> <C> <C> <C>
Current Trading Price (08/16/99) $8,366 $47 $2.54
Historical Trading Analysis
52-Week High/Low $9,941 - $4,358 $55 - $24 $3.01 - $1.32
Comparable Company Analysis
Enterprise Value per Subscriber(3) $10,176 - $6,876 $57 - $38 $3.08 - $2.08
---------------- ------------------ -------------
Valuation Range $10,176 - $6,876 $57 - $40 $3.01 - $2.18
---------------- ------------------ -------------
</TABLE>
(1) Assumes PEC Israel Economic Corporation owns 0.6% of UPC's diluted stock.
(2) Assumes 18,362,188 shares outstanding.
(3) Based on Enterprise Value per subscriber of $1,700-$2,300.
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<PAGE>
Public Holdings
================================================================================
Other Public Holdings
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Share Price Shares in PEC's Market Value of PEC's Unrealized Projected Capital Value after
Other Public Holdings (8/16/1998) Ownership PEC's Holdings Cost Gain (Loss) Gain/(Loss) Taxes Taxes
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Agis Industries 2,710 727,000 4,693 5,882 (1,189) (297) 4,990
Cell Pathways $ 11.00 160,527 1,766 763 1,003 251 1,515
Electronic Line 939 833,250 1,844 1,999 (135) (34) 1,897
Gilat Communications $ 15.06 888,075 13,377 1,010 12,367 3,092 10,285
Ham-Lat (Israel Canada) 2,200 768,676 4,028 4,398 (370) (92) 4,120
Isrotel 1,137 979,698 2,653 2,024 629 157 2,496
Klil Industries 9,510 418,865 9,488 7,658 1,830 457 9,030
Liraz 3,670 1,251,288 10,938 6,288 4,650 1,163 9,776
Logal $ 0.50 248,690 124 403 (279) (70) 194
Maxima (NIS 1 shares) 600 790,803 1,130 1,719 1,258 314 2,662
(NIS 5 shares) 2,460 315,159 1,847 -- -- -- --
Mul-T-Lock 860 2,283,017 4,677 3,260 1,417 354 4,322
Nice $ 29.44 576,833 16,981 10,492 6,489 1,622 15,358
Tefron $ 10.56 958,433 10,123 262 9,861 2,465 7,658
------ ------ ------ ----- ------
Exchange rate (NIS/$) 4.20 Total 83,687 46,158 37,530 9,382 74,305
Capital Gains Tax 25%
PEC's Share Outstanding 18,362,188 Per share $ 4.56 $ 2.51 $ 2.04 $ 0.51 $ 4.05
====================================================================================================================================
</TABLE>
Source: Bloomberg, PEC, SEC Filings
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<PAGE>
Exhibit (c)(2)
TRANSLATION FROM HEBREW
January 7, 1999
Discount Investment Corporation
14 Beth Ha'Shoeva Lane
Tel Aviv
Dear Sirs,
Re: ASSIGNMENT OF RIGHTS AND OBLIGATIONS
In accordance with and subject to section 4 of the Private Placement
Agreement dated October 15, 1998, between IDB Development Corporation Ltd.
("IDBD") and Discount Investment Corporation Ltd. ("DIC"), IDBD hereby
assigns to DIC, without additional consideration, the rights and obligations
referred to in the abovementioned section 4, including its rights and
obligations in connection with the merger offer submitted by IDBD to PEC
Israel Economic Corporation ("PEC") and in connection with the Merger
Agreement ("Merger Agreement") dated December 15, 1998, between IDBD, PEC and
PEC Acquisition Corporation (the "Subsidiary").
For the removal of doubt, and in accordance with section 7.05 of the Merger
Agreement (but subject to sections 4 and 16 of the Private Placement
Agreement), it is hereby clarified that from the date of signing this
assignment letter no obligations will apply to IDBD in connection with the
Merger Agreement, and IDBD will not have any rights in connection with the
Merger Agreement.
IDBD will transfer without consideration on the date of signing this
assignment letter all of its shares of the Subsidiary. In connection
therewith IDBD declares that all the representations and undertakings in
section 3.07 of the Merger Agreement relating to the Subsidiary are correct
as of the date of this assignment and share transfer letter.
---------------------------------------------
IDB Development Corporation Ltd.
(signed)
By:
Arthur Kaplan, Corporate Secretary
Rina Cohen, Controller
DIC hereby accepts the assignment of the rights and obligations being the
subject matter of this letter.
---------------------------------------------
Discount Investment Corporation Ltd.
(signed)
By:
