<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------------------
SCHEDULE 13D
(Rule 13d - 101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO 13D-1(a) AND
AMENDMENTS THERETO FILED PURSUANT TO 13D-2(a)
(AMENDMENT NO. 14 ) *
PEC ISRAEL ECONOMIC CORPORATION
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(Name of Issuer)
COMMON STOCK ($1.00 PAR VALUE PER SHARE)
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(Title of Class of Securities)
705098-10-1
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(CUSIP Number)
JAMES I. EDELSON, 511 FIFTH AVENUE, NEW YORK, N.Y. 10017 (212) 251-1153
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(Name, Address and Telephone Number of Person Authorized to Receive
Notices and Communications)
NOVEMBER 5, 1999
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 13(d)-1(f) or 13d-1(g), check the following
box / /.
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 13d-7(b) for other
parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
Page 1 of 13 pages
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SCHEDULE 13D
CUSIP NO. 705098-10-1 PAGE 2 OF 13 PAGES
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NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
1
Discount Investment Corporation Ltd.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
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3 SEC USE ONLY
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SOURCE OF FUNDS*
4 BK
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e)
5 / /
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CITIZENSHIP OR PLACE OF ORGANIZATION
6 Israel
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NUMBER OF SOLE VOTING POWER
SHARES 7 -0-
BENEFICIALLY ---------------------------------------------
OWNED BY SHARED VOTING POWER
EACH 8 14,937,792
REPORTING ---------------------------------------------
PERSON WITH SOLE DISPOSITIVE POWER
9 -0-
---------------------------------------------
SHARED DISPOSITIVE POWER
10 14,937,792
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11 14,937,792
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CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12 / /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
100%
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14 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
CUSIP NO. 705098-10-1 PAGE 3 OF 13 PAGES
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NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
1
IDB Development Corporation Ltd.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
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3 SEC USE ONLY
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SOURCE OF FUNDS*
4 Not Applicable
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e)
5 / /
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CITIZENSHIP OR PLACE OF ORGANIZATION
6 Israel
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NUMBER OF SOLE VOTING POWER
SHARES 7 -0-
BENEFICIALLY ---------------------------------------------
OWNED BY SHARED VOTING POWER
EACH 8 14,937,792
REPORTING ---------------------------------------------
PERSON WITH SOLE DISPOSITIVE POWER
9 -0-
---------------------------------------------
SHARED DISPOSITIVE POWER
10 14,937,792
- --------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11 14,937,792
- --------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12 / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
100%
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14 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
CUSIP NO. 705098-10-1 PAGE 4 OF 13 PAGES
- --------------------------------------------------------------------------------
NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
1
IDB Holding Corporation Ltd.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
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3 SEC USE ONLY
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SOURCE OF FUNDS*
4 Not Applicable
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e)
5 / /
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CITIZENSHIP OR PLACE OF ORGANIZATION
6 Israel
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NUMBER OF SOLE VOTING POWER
SHARES 7 -0-
BENEFICIALLY ---------------------------------------------
OWNED BY SHARED VOTING POWER
EACH 8 14,937,792
REPORTING ---------------------------------------------
PERSON WITH SOLE DISPOSITIVE POWER
9 -0-
---------------------------------------------
SHARED DISPOSITIVE POWER
10 14,937,792
- --------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11 14,937,792
- --------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12 / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
100%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
CUSIP NO. 705098-10-1 PAGE 5 OF 13 PAGES
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NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
1
Leon Recanati
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
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3 SEC USE ONLY
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SOURCE OF FUNDS*
4 Not Applicable
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e)
5 / /
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CITIZENSHIP OR PLACE OF ORGANIZATION
6 Israel
- --------------------------------------------------------------------------------
NUMBER OF SOLE VOTING POWER
SHARES 7 -0-
BENEFICIALLY ---------------------------------------------
OWNED BY SHARED VOTING POWER
EACH 8 14,937,792
REPORTING ---------------------------------------------
PERSON WITH SOLE DISPOSITIVE POWER
9 -0-
---------------------------------------------
SHARED DISPOSITIVE POWER
10 14,937,792
- --------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11 14,937,792
- --------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12 / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
100%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
CUSIP NO. 705098-10-1 PAGE 6 OF 13 PAGES
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NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
1
Judith Yovel Recanati
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
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3 SEC USE ONLY
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SOURCE OF FUNDS*
4 Not Applicable
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e)
5 / /
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CITIZENSHIP OR PLACE OF ORGANIZATION
6 Israel
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NUMBER OF SOLE VOTING POWER
SHARES 7 -0-
BENEFICIALLY ---------------------------------------------
OWNED BY SHARED VOTING POWER
EACH 8 14,937,792
REPORTING ---------------------------------------------
PERSON WITH SOLE DISPOSITIVE POWER
9 -0-
---------------------------------------------
SHARED DISPOSITIVE POWER
10 14,937,792
- --------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11 14,937,792
- --------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12 / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
100%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
CUSIP NO. 705098-10-1 PAGE 7 OF 13 PAGES
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NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
1
Elaine Recanati
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
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3 SEC USE ONLY
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SOURCE OF FUNDS*
4 Not Applicable
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e)
5 / /
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CITIZENSHIP OR PLACE OF ORGANIZATION
6 United States
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NUMBER OF SOLE VOTING POWER
SHARES 7 -0-
BENEFICIALLY ---------------------------------------------
OWNED BY SHARED VOTING POWER
EACH 8 14,937,792
REPORTING ---------------------------------------------
PERSON WITH SOLE DISPOSITIVE POWER
9 -0-
---------------------------------------------
SHARED DISPOSITIVE POWER
10 14,937,792
- --------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11 14,937,792
- --------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12 / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
100%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
CUSIP NO. 705098-10-1 PAGE 8 OF 13 PAGES
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NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
1
Estate of Raphael Recanati
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
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3 SEC USE ONLY
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SOURCE OF FUNDS*
4 Not Applicable
- --------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e)
5 / /
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CITIZENSHIP OR PLACE OF ORGANIZATION
6 Israel
- --------------------------------------------------------------------------------
NUMBER OF SOLE VOTING POWER
SHARES 7 -0-
BENEFICIALLY ---------------------------------------------
OWNED BY SHARED VOTING POWER
EACH 8 14,937,792
REPORTING ---------------------------------------------
PERSON WITH SOLE DISPOSITIVE POWER
9 -0-
---------------------------------------------
SHARED DISPOSITIVE POWER
10 14,937,792
- --------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11 14,937,792
- --------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12 / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
100%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
This Amendment No. 14 amends this Statement on Schedule 13D as
previously filed with the Securities and Exchange Commission. Unless
otherwise defined in this Amendment No. 14 to Schedule 13D, capitalized
terms used in this Amendment No. 14 are defined in Amendment No. 10 to this
Statement on Schedule 13D, as previously filed and amended.
The following amends Items 2, 3, 4, 5 and 7 of this Statement on
Schedule 13D as previously filed.
Item 2. IDENTITY AND BACKGROUND,
Item 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION,
Item 4. PURPOSE OF THE TRANSACTION and
Item 5. INTEREST IN SECURITIES OF THE ISSUER.
On January 7, 1999, IDB Development transferred all of its shares of
common stock of the Issuer, constituting 14,937,792 shares, or 81.35% of the
outstanding common stock of the Issuer, to Discount Investment Corporation Ltd.,
an Israeli corporation ("DIC"), in exchange for ordinary shares of DIC.
DIC, an Israeli corporation, with its principal offices at 14 Beth
Hashoeva Lane, Tel Aviv, Israel, is hereby added as a Reporting Person. DIC
organizes, acquires interests in, finances and participates in the management of
companies located in the State of Israel.
As of November 5, 1999, companies controlled by Mr. Leon
Recanati, Mrs. Judith Yovel Recanati, Mrs. Elaine Recanati and the estate
of Mr. Raphael Recanati together beneficially owned approximately 51.6% of
the equity and voting power of IDB Holding. Mr. Leon Recanati is Co-
Chairman and Co-Chief Executive Officer of IDB Holding and Co-Chairman of
IDB Development. On May 28, 1999, Mr. Raphael Recanati died and ceased to
be a Reporting Person. The estate of Raphael Recanati is hereby added as a
Reporting Person. Mrs. Elaine Recanati is the aunt of Mr. Leon Recanati
and Mrs. Judith Yovel Recanati who are brother and sister.
Page 9 of 13 pages
<PAGE>
DIC has not, during the last five years, been convicted in any
criminal proceeding, excluding traffic violations and similar misdemeanors. In
addition, DIC has not, during the last five years, been a party to a civil
proceeding of a judicial or administrative body of competent jurisdiction which
as a result of such proceeding was or is subject to a judgment, decree or final
order enjoining future violations of, or prohibiting or mandatory activities
subject to, Federal or state securities laws or finding any violation with
respect to such laws.
Pursuant to an Agreement and Plan of Merger, dated as of December 15,
1998, as amended, by and among the Issuer, DIC and PEC Acquisition Corporation,
a Maine corporation and wholly-owned subsidiary of DIC ("Merger Sub"), on
November 5, 1999 (a) Merger Sub was merged with and into the Issuer (the
"Merger") with the Issuer as the surviving corporation in the Merger, (b) each
outstanding share of common stock of the Issuer, except those owned by DIC and
by shareholders who perfected their appraisal rights in accordance with the
Maine Business Corporation Act, were converted into the right to receive $36.50
in cash, without interest, (c) each share of common stock of the Issuer owned by
DIC was cancelled and (d) the 100 outstanding shares of common stock of Merger
Sub owned by DIC were converted into 14,937,792 shares of common stock of the
Issuer and constitute the only outstanding shares of capital stock of the
Issuer.
As a result of the Merger, as of November 5, 1999, the Reporting
Persons may be deemed to share the power to vote and dispose of the 14,937,792
shares of common stock of the Issuer held by DIC, constituting 100% of the
outstanding common stock of the Issuer. Further, as a result of the Merger, the
shares of common stock of the Issuer no longer trade on the New York Stock
Exchange. In addition, the registration of the Issuer's shares of common stock
and the Issuer's reporting obligations under the Securities Exchange Act of
1934, as amended, have been terminated.
Approximately $125 million was required to acquire the shares of
common stock of the Issuer not owned by DIC pursuant to the Merger. Pursuant to
a promissory note dated October 18, 1999 made by Merger Sub payable to the order
of Bank Leumi USA (the "Bank"), on November 5, 1999 Merger Sub borrowed $125
million from the Bank. The promissory note bears interest at a rate of LIBOR
plus 0.22% per annum and has a final maturity date of June 30, 2000. DIC has
guaranteed payment of all amounts due on such note. As a result of the Merger,
the Issuer has assumed the $125 million loan made to Merger Sub.
Page 10 of 13 pages
<PAGE>
Item 7. MATERIAL TO BE FILED AS EXHIBITS.
<TABLE>
<S> <C>
Exhibit 1 Agreement dated November 4,
1999 between DIC and PEC
authorizing PEC to file this
Schedule 13D and any
amendment hereto on behalf of
DIC.
Exhibit 2 Agreement and Plan of Merger
dated as of December 15,
1998, as amended, among DIC,
Merger Sub and the Issuer,
incorporated by reference to
Annex A to the definitive
Proxy Statement of the Issuer
dated October 5, 1999.
Exhibit 3 Promissory Note dated October
18, 1999 made by Merger Sub
payable to the order of Bank
Leumi USA in the principal
amount of $125 million,
incorporated by reference to
the Schedule 13E-3/A
(Amendment No. 6) dated
November 5, 1999 with respect
to the Issuer.
Exhibit 4 Unlimited Guaranty dated
October 26, 1999 made by DIC
in favor of Bank Leumi USA
with respect to the
obligations of Merger Sub to
Bank Leumi USA, incorporated
by reference to Schedule 13E-
3/A (Amendment No. 6) dated
November 5, 1999 with respect
to the Issuer.
</TABLE>
Page 11 of 13 pages
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of our knowledge and belief,
the undersigned certify that the information set forth in this Amendment No. 14
is true, complete and correct.
Date: November 29, 1999 DISCOUNT INVESTMENT CORPORATION LTD.
IDB DEVELOPMENT CORPORATION LTD.
IDB HOLDING CORPORATION LTD.
LEON RECANATI
JUDITH YOVEL RECANATI
ELAINE RECANATI
By: PEC ISRAEL ECONOMIC CORPORATION
By: /s/ JAMES I. EDELSON
------------------------------------------------
James I. Edelson, Executive Vice
President of PEC Israel Economic
Corporation on behalf of IDB Development
Corporation Ltd. and IDB Holding
Corporation Ltd. pursuant to agreements
annexed as exhibits to Amendment No. 4
to the Schedule 13D, on behalf of Leon
Recanati and Judith Yovel Recanati
pursuant to agreements annexed as
exhibits to Amendment No. 7 to the
Schedule 13D, on behalf of Elaine
Recanati pursuant to an agreement
annexed as exhibit 1 to Amendment No. 12
to the Schedule 13D and on behalf of
Discount Investment Corporation Ltd.
pursuant to the agreement annexed as
exhibit 1 to this Amendment No. 14 to
the Schedule 13D.
Page 12 of 13 pages
<PAGE>
November 4, 1999
PEC Israel Economic Corporation
511 Fifth Avenue
New York , N.Y. 10017
U.S.A.
Gentlemen,
Pursuant to rule 13d-1(k)(1)(iii) promulgated under the Securities
Exchange Act of 1934, as amended, the undersigned hereby agrees that PEC Israel
Economic Corporation ("PEC") may file as necessary on behalf of the undersigned
with the Securities and Exchange Commission a Schedule 13D or a Schedule 13G and
any amendments thereto in respect of shares of PEC purchased, owned or sold from
time to time by the undersigned.
PEC is hereby authorized to file a copy of this letter as an exhibit
to said Schedule 13Ds or Schedule 13Gs or any amendments thereto.
Very truly yours,
DISCOUNT INVESTMENT CORPORATION
By: /s/ J. BOOCK /s/ S. COHEN
----------------------------
Agreed:
PEC Israel Economic Corporation
By: /s/ JAMES I. EDELSON
---------------------------
James I. Edelson
Executive Vice President
