Romania: Italian Bank Withdraws from National Savings House Privatisation Race

19. Juni 2006, 00:00

The Romanian Minister of Finances Sebastian Vladescu, head of the privatisation commission of the National Savings...

The Romanian Minister of Finances Sebastian Vladescu, head of the privatisation commission of the National Savings House (CEC), told Ziarul Financiar daily on Monday that the Italian Bank Monte dei Paschi di Siena have failed to confirm interest in CEC after the privatisation process was resumed.

“I have seen, however, the letters sent by EFG Eurobank, OTP, Dexia, Raiffeisen and by the National Bank of Greece,” said Vladescu.

Currently there are only five competitors for the CEC’s takeover, the last major bank in Romania run by the state.

The deadline for submitting the offers is July 17 and the financial institutions have begun accessing the bank’s data room. Until the end of the month, they may update their information with the changes CEC has been through over the past six months.

According to the revised privatisation strategy, the state is selling 69.9 per cent of the CEC stock, including 9.9 per cent that by law will be fed into the Property Fund, the value of which will be transferred into the fund after the sale.

The CEC employees and the retired bank staff will have preemption rights for the purchase of five per cent of the shares.

After the short-listing, there will emerge two or three banks who will be urged to offer improved and binding bids until the middle of August. The first two qualify automatically into the final stage, but there could also be competitors is the third one obtains a score that is below the first one by 10 per cent at the most.

The Romanian authorities stopped the privatisation process for a few months end 2005 because they were not happy with the financial offers. At the time, none of the bids exceeded EUR 300 million.

Eastbusiness.org
In cooperation with and under the responsibility of Eastbusiness, the business information service for Central and Eastern Europe

You can subscribe to the following newsletters
Eastexpress
CEE-Country
Share if you care.