Fat cat Aspiring big shots and fat cats might want to wait a bit
before buying their own companies. Photo by AP Text size this
story is by  The premium over market value paid to acquire a
controlling block of shares of publicly traded companies in
Israel has averaged an exorbitant 27%.  But that margin is
likely to contract substantially in the next two years, predicts
the accounting and consulting firm BDO Ziv Haft as the benefits
accruing to controlling shareholders become increasingly
constricted.  The premiums can be expected to drop to a range of
10% to 15% or even lower, Yigal Toledano, a partner at the firm,
said at a conference held by the Tel Aviv Stock Exchange on the
effect of changes in the capital market on company valuation.  A
survey conducted by BDO found that control premiums paid on
transactions in Israel were similar to those paid in countries
such as Venezuela and Colombia.  In contrast, premiums in
advanced European countries tended to be in the range of 8% to
10% while averaging just 2%