Insights & News

Israeli companies have rediscovered London’s AIM market. At today’s “Time for London IPO” conference on the London Stock Exchange, participants expressed differing views on the benefits of an AIM listing. Adv. Micky Barnea, managing partner at Barnea and a specialist in London IPOs, explained: “Unlike in Israel, where shareholders have the final say, in London that authority rests with the board of directors. This difference in the balance of power may make the market less suitable for companies with a single controlling shareholder, who would have less scope to intervene in decision-making and less influence over the board’s composition.”

Israeli Finance Minister Yair Lapid recently proposed exempting couples with at least one child from VAT when purchasing their first apartment from a developer. Ariel Nadler, head of Barnea’s Real Estate Department, believes the proposal would help young couples buy a home but would not, on its own, be enough to address the challenges facing Israel’s housing market. Calcalist, March 19, 2014.

As part of the firm’s pro bono work, we participate in the “A Different Kind of Class” project and have partnered with a sixth-grade class at Rambam Elementary School in Netanya.

The head of Barnea's Internet Department published an article in Hebrew in the financial newspaper Calcalist discussing a recent Israeli court decision awarding damages to a plaintiff for defamatory statements posted about him on Facebook. He criticizes the court’s reasoning, which gave less weight to defamation on Facebook than to defamation published through other channels. He further argues that defamatory content published on Facebook should be treated in the same way as defamation published elsewhere.

Dun & Bradstreet ranked Barnea as a leading law firm in six practice areas: International Commercial Law, Mergers & Acquisitions, Project Finance & Infrastructure, Commercial Litigation, High-Tech, and Capital Markets.

The head of Barnea's Internet Department published an article titled "Casino in Israel – on the Cards?" in InterGaming Law, the specialist international gaming law magazine.

Pilat Media Plc, a UK-incorporated public company, held a unique position: it was the only UK company listed on the Tel Aviv Stock Exchange (TASE) and the only company fully listed on both AIM and TASE, meeting the regulatory requirements of both jurisdictions. The firm represented Pilat Media from its inception through a demerger from an Israeli public company and advised it on compliance with Israeli regulatory requirements over the years. In April 2014, Pilat Media was sold to Sintec Media, one of its major competitors, for cash consideration exceeding USD 100 million. Barnea & Co. represented Pilat Media and its shareholders on the Israeli aspects of the transaction.

Carmit’s civil suit is based in part on records and documents collected by the Antitrust Authority during its investigations. The following was submitted to the Tel Aviv District Court by Adv. Zohar Lande, Adv. Shai Sharvit, and Adv. Moran Bickel of Barnea.

The article below examines the privatization chapter of Israel’s newly enacted law to promote competition and reduce economic concentration. Among other provisions, the chapter restricts the State’s ability to grant rights to, or enter into agreements with, entities deemed to contribute to economic concentration because of rights they have already received from the State. Adv. Zohar Lande argues that these provisions are far-reaching, create market uncertainty, and may hinder the efficient allocation of rights in the future, ultimately harming the market. To read more, click here.

On December 23, Israel’s Knesset approved Amendment 198 to section 75B of the Income Tax Ordinance, 1961 (ITO), strengthening the taxation of controlled foreign corporations (CFCs). The amendment took effect on January 1. Since 2006, Israel has taxed qualifying Israeli-resident shareholders, both corporate and individual, on the undistributed profits of foreign companies that qualify as CFCs. Under this regime, an Israeli-resident shareholder who individually holds at least 10 percent of a foreign company’s means of control and, together with other Israeli-resident shareholders, holds at least 50 percent must report their proportionate share of the company’s undistributed profits as a deemed dividend, provided that most of the company’s income in the relevant tax year is considered passive under Israeli law. The regime also applies to foreign companies in which close relatives hold at least 40 percent of the means of control.