Bronfman seeks to raise Israel Discount Bank stake

JERUSALEM, April 13 (Reuters) - U.S.-Canadian businessman Matthew Bronfman has commenced talks to increase his stake in Israel Discount Bank (DSCT.TA: Quote, Profile, Research), Israel's third-largest lender said on Sunday.

Bronfman and businessman Rubin Schron bought a combined 26 percent of Discount Bank in early 2006, enough to give effective control.

Bronfman, with 15.6 percent, has begun talks to buy the other 10.4 percent that Schron's Treetops Acquisition II Ltd owns, the bank said in a statement to the Tel Aviv Stock Exchange (TASE).

The sides were looking to come to an agreement within 45 days with a deal dependent on regulatory approval, Discount said.

Israel's government holds another 25 percent of Discount, while the remaining 49 percent is traded on the TASE.

The controlling shareholders have an option to exercise buying the state's 25 percent holding by the end of 2008. (Reporting by Steven Scheer, editing by Will Waterman)