The Sarajevo-based Dnevni Avaz on Tuesday reported that M.T. Abraham Foundation, led by Israeli businessman Amir Gross Kabiri, has appeared as a potential buyer of the Mostar-based debt-ridden smelter "Aluminij".

The daily newspaper cited a source from the Bosnian Federation’s government, who spoke on the condition of anonymity, as saying that representatives of the Paris-based foundation visited Sarajevo last week and that they held a secret meeting with the federation’s Prime Minister Fadil Novalic on the issue of this biggest company in Herzegovina which has recently filed for bankruptcy.

The Croatian government has a 12% stake in the plant, while Bosnia’s Bosniak-Croat Federation entity is the biggest single shareholder with a 44% stake, and small shareholders hold the remaining 44%.

The M.T. Abraham Foundation introduces itself as a nonprofit art institution based in Paris with offices in Tel-Aviv and Geneva. It also states on its web site that it cooperates with the China Machinery Engineering Corporation. Amir Gross Kabiri, is known in the business world as the owner of the Hapoel Tel-Aviv F.C.

The Federation’s government is also set to continue negotiations with the Dubai-based WAQT Trade L.L.C on its acquisition of the 44% stake which that government holds in the company plus 44% of shares owned by small share-owners.

The Croatian government, a minority stakeholder in the Mostar-based smelting plant, has recently announced consultations with the company’s management and the government of Bosnia and Herzegovina’s Federation over the smelter which is in financial trouble and considers that it is necessary to thoroughly change its current business model to make the company successful.