Romania: Erste Bank Wants Full Control Of BCR Bank

Erste Bank aims to acquire the remaining shares in BCR in order to reach full ownership of the bank, Erste’s chairman Andreas Treihl said in Vienna, quoted by Ziarul Financiar daily.

Erste Bank aims to acquire the remaining shares in BCR in order to reach full ownership of the bank, Erste’s chairman Andreas Treihl said in Vienna, quoted by Ziarul Financiar daily. The Austrians expressed their openness for discussions with the owners of the minority stakes – namely bank’s employees [8%] and the five investment funds [SIFs, 30%]. Assuming the minority shareholders require the same price as Erste paid to the state, IFC and EBRD for the 62% stake, the Austrians should come up with another €2.3 billion on the top of the €3.75 billion already paid for the majority stake in BCR.

As for the obligation undertaken in the privatization contract to list BCR’s shares on the Bucharest Stock Exchange within three years from the conclusion of the deal, Treihl said, “the contract does not say where the shares have to come from,” implying that it is no binding stipulation and indicating that the minority shareholders may attempt to get a better price from the market.