Yesterday KOOR shares on TASE went up 7%. The reason was, now I know, that Koor Industries Ltd. (TASE:KOR) will sign a second agreement with Goldman Sachs Inc. (NYSE: GS) in a few days, boosting the amount of credit available to invest in bank shares to $1.5 billion, of which $820 million would be a non-recourse loan. Koor added that, together with its own capital, it will have up to $2.7 billion for these investments. Koor's board has already approved an investment of up to NIS 1.5 billion in Credit Suisse (SWXCSGN) and Barclays Bank plc (LSE BARC). They think it is a good business to take out loans and buy international bank shares. I took a small bank loan (libor + 1.4%) to buy KOOR.
Should I sell KOOR and buy Credit Suisse and Barclays directly? Why I need a holding intermediary? I am sure KOOR gets loans in better conditions than I do and purchases bank shares cheaper than I do. But also bites into the profits of those investments. I have to learn more about how these holding companies work.