Cairo: With container shipping in the process of a period of consolidation, Israel Corporation is lobbying Tel Aviv to relinquish its ‘golden share’ in ZIM Integrated Shipping Services that allows the government to outvote all other shareholders.
ZIM is the 18th largest containerline in the world and according to local media in Israel it is keen to get in on the mergers and acquisitions act that is sweeping the sector – with Germany’s Hapag-Lloyd and Chile’s CSAV agreeing to merge this past week.
The government’s golden share in ZIM, which dates back to when the line was state-run, makes it impossible for the company to raise capital and expand its fleet, said CEO Rafi Daniel.
“The attempts by workers to stop the golden shares from being eliminated will only bring ZIM to collapse. If the workers think ZIM only needs another infusion of cash and everything can go on as it was, then they are reading the competitive, legal and business map wrong,” he said.
He sharply criticized the ZIM workers’ committee that sees the golden share as a defence against layoffs. [20/04/14]