London Stock Exchange courts controversy in Israel

The London Stock Exchange is to brave one of the most controversial markets in the world this week, making a presentation in Tel Aviv to try to tempt Israeli companies to list in London.

A dozen groups from the war-torn nation already have a listing on either the LSE or its junior Alternative Investment Market. However, this is a fraction of the number of Israeli firms listed on Nasdaq, the US technology- focused exchange.

Tim Ward for the LSE and Simon Brickles from AIM will join two former Secretaries of State for Trade and Industry – Peter Mandelson and Lord Young of Graffham – as well as executives from Lehman Brothers, Shore Capital and PricewaterhouseCoopers at the marketing presentation, which takes place on Tuesday at the Hilton Hotel in Tel Aviv.

The marketing drive comes at an unusual, and some might say insensitive, time. Israel has been embroiled in a virtual civil war with the Palestinian Authority as suicide bombers have caused death and destruction across Israel.

The troubles have had a negative effect on the Israeli economy, partially due to some people boycotting Israeli goods but more to falling investment because of the political uncertainties. Economists are predicting that Israeli GDP could fall in dollar terms by as much as 5 per cent.

Israel also has a reputation for suffering financial scandals, the latest of which hit the Trade Bank, defrauded of around £30m by an employee.

Despite this, the country still has a thriving technology sector with expertise in computer security, semiconductors and e-commerce. Two Israeli companies listed in London, XTL and BATM, will be at the presentation.

The marketing push is the brainchild of Jonathan Metliss, a partner at lawyers SJ Berwin. He said the political uncertainty meant there was a chance to "promote London as a safe haven for Israeli companies that want to raise money on the stock market".