It’s been a busy week for Israel investors. For those subscribers to our new subscription newsletter, Israel Opportunity Investor, they’ve seen one portfolio company, Gilat Networks (GILT), announce an acquisition for a premium. While we hate to brag and say “we told you so”, well, we told you so. Read more about how merger arbitrage investors might look at this deal.

We saw CFO musical chairs this week with the Gilat CFO moving over and joining another portfolio holding, Check Point Software (CHKP). While we’re on the topic of Check Point, we wrote recently about a Barron’s article that mentioned that Check Point could be an acquisition candidate. We’ve hear your remarks and invite you to give your opinion. Will donkeys fly before this happens or for the right price, will Check Point give it up. You make the call.

Forbes sees value in Israel real estate and has ranked it the top “up and coming” location globally. The financial publication sees 2008 as a very tough market for real estate but sees Israel as a bright spot for global investors

We also saw the first introduction of a true Israel ETF (ESI). You can read our run-down of what we think of the iShares product here.

IOI Portfolio company and Israel geothermal, clean energy play, Ormat (ORA), lands another Nevada deal.

The US Army is looking to invest in Israel water technology. Seemingly, the US Army invests sizable amounts in private equity and one of its funds is on the prowl looking to invest in Israel water technology companies. Read more.

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Aaron Katsman
www.IsraelNewsletter.com

Today’s news that Gilat Satellite Networks (GILT) is going to be acquired for $11.40 a share, should come as no surprise to IOI readers. We hate to brag, but we called this one a while back. This continues the IOI trend of predicting M&A, as we called the ECI Telecom deal as well. Maybe it’s time that you subscribe to our premium product( Subtle huh).

The price is about a 10% premium to Friday’s closing price.

The investor group includes Mivtach Shamir, The Gores Group LLC, DGB Investments Inc. and companies affiliated with Roy Ben-Yami, Ami Lustig and Eytan Stibbe.

While I thought that the company should remain independent and continue to grow, for the company and large investors, the deal was too good to pass up.  

For merger arbitrage investors, keep your eye on how Gilat trades over the next few months. With the deal set to be completed in September, any weakness in the stock could make for an interesting play. After all a potential 6-10% return in 5 months, is nothing to sneeze at, especially in markets that can’t seem to go up.

Disclosure: Author’s fund holds a position in GILT. He holds no position in any other stock mentioned as of 3/31/08.

Please see our Disclaimer HERE.

NEW! Introducing Israel Opportunity Investor, our monthly subscription-only newsletter. Stay ahead of the game and make smart decisions in Israel stocks. Go here to learn more.

Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.

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Aaron Katsman
www.IsraelNewsletter.com  

As we have posted about many times in the past, the word on the street is that Gilat Satellite Networks(GILT) is for sale. The big question after yesterday’s strong earnings report is whether they should accept a potential offer? In fact they have rejected past offers.

Gilat reported really strong earnings and had good things to say about the rest of ‘08. Gilat’s Chief Executive Officer and Chairman of the Board Amiram Levinberg said, “The quarterly and annual results show a thriving core business, with record quarterly and annual revenues. We met our management financial objectives for 2007 with double digit revenue growth of 14% and, excluding the non-cash impairment, an expansion of our operating margin to 6.2% and net income margin to 7.9%.”

Gilat chairman and CEO Amiram Levinberg said, “Our board of directors continues to evaluate a strategic transaction for the company. We expect our board will reach resolution in the coming weeks.”  

With a “thriving core business” the question is why sell? Why not keep growing the company organically? With potential acquisition prices rumoured to be at the $11.50 level, and the stock currently trading above $11, investors wouldn’t see much of a premium. Only in the case of Gilat receiving a price that they can’t refuse, should they accept a takeover bid. Otherwise they should keep up the good work they are doing, keep signing deals, and grow the company. If you do that, the stock price will take care of itself.

Disclosure: Author’s fund holds a position in GILT. He has no position in any other stock mentioned as of 2/22/08.

Please see our Disclaimer HERE.

NEW! Introducing Israel Opportunity Investor, our monthly subscription-only newsletter. Stay ahead of the game and make smart decisions in Israel stocks. Go here to learn more.

Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.

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Rumours are again circulating that Gilat Satellite Networks(GILT) is about to be acquired. We reported on this a few months ago and it appears that we actually got one right. Giddy up!Globes is reporting, “that after months of rumors and speculation, Gilatcould be sold in the near future. It is believed that a group headed by Mivtach Shamir Holdings Ltd., one of its current shareholders, is close to signing an agreement for the acquisition of Gilat, after raising its bid to $11.60 per share. The new offer reflects a valuation of $455 million for Gilat, or $483 million fully diluted, and a 14.2% premium over its current market price.

Gilat develops and produces very small aperture terminals for satellite-based communications networks. As my buddy Zack Miller wrote,”Competition in the satellite industry is heating up. Media companies, along with cable and wireless companies, have declared their desire to enter the satellite communications market. Instead of building an entire division dedicated to this, some of these companies are looking to either partner with, or acquire,an existing firm with good sales distribution. Gilat, with its focus on emerging markets and strong balance sheet, could be a good acquisition candidate.”

Disclosure: Author’s fund holds a position in GILT. He has no position in any other stock mentioned as of 1/23/08.

Please see our Disclaimer HERE.

NEW! Introducing Israel Opportunity Investor, our monthly subscription-only newsletter. Stay ahead of the game and make smart decisions in Israel stocks. Go here to learn more.

Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.

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