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Romanian BCR Listing Should Be Postponed Until Mkt Conditions Favorable – Erste CEO

Romanian five regional investment funds have a low interest in listing Erste’s Romanian unit BCR for the moment, so that the floating should be deferred until the capital market conditions would be improved, Erste CEO Andreas Treichl said Friday.
Romanian BCR Listing Should Be Postponed Until Mkt Conditions Favorable - Erste CEO
27 feb. 2009, 13:28, English

In Treichl’s opinion, the privatization authority AVAS would not force shareholders into an action they don’t want at the moment, although the listing is an obligation undertaken by contract.

According to BCR privatization contract, its shares should be traded on Bucharest Stock Exchange in maximum three years from takeover, but Erste Bank stake should not decrease below 50% plus 1 share.

Erste Bank bought a 61.88% stake in BCR, for EUR3.75 billion, from the state, the European Bank for Reconstruction and Development and International Finance Corporation. The Austrian group subsequently rose its stake to 69.17%, by taking over stakes from BCR employees.

Though the contract was inked in December 2005, the takeover was concluded only in 2006’s fall.

The finve regional investment funds, or SIFs, own a 30.11% stake.