Feb 16 (Reuters) - Scotiabank's 1832 Asset Management

subsidiary has dissolved its stake in Israeli arms manufacturer

Elbit Systems , regulatory filings showed,

after the Canadian bank faced ​sharp criticism for the

investment.

Activists angered ‌over Elbit's role in supplying military

equipment used by Israel during ⁠its war in Gaza had pressured

the Scotiabank investment ⁠arm, which at one point was

the ‌biggest foreign ‌investor in the weapons maker.

The investment arm no longer holds shares ​in Elbit, a change

from ‌its reported holding of about 165,000 shares in November,

according to the filing with the ​U.S. Securities and ​Exchange

Commission on ‌Friday.

The Canadian bank did not immediately respond to a Reuters

request for comment on the stake ⁠sale.

Scotiabank's exposure to the weapons maker had ⁠triggered a

number of protests at the bank's branches, Reuters reported in

2023. It had also disrupted Canada's prestigious Giller Prize

Gala, a literary award that was ⁠sponsored ‌by Scotiabank.

The contract between the Giller ‌Prize and Scotiabank ended

in February 2025.

The Israeli Defence ⁠Ministry said in January that it had

signed a multi-year agreement for air munitions with Elbit worth

$183 million.

Elbit reported sharply higher third-quarter profit in

November, fueled by sales to Israel's military during its war

against Palestinian militant group ​Hamas in Gaza and by higher

global defence spending.

U.S.-listed shares of Elbit more than doubled last year.