SIFs favour capital increase to selling shares in view of BCR listing

Financial Investment Companies (SIFs) would rather back a share capital increase at the BCR (Romanian Commercial Bank) rather than sell their own shares in it, in order for the largest bank on the market to meet the conditions necessary for floatation in 2009, in line with the commitment undertaken by Erste Bank, the majority shareholder, in the privatisation contract. "The SIFs will not sell shares from their stakes in view of the bank's listing. I think issuing a new stake, which would become available on the market is a better option, a share capital increase that would target a very large number of individual and institutional investors. The BCR will, therefore, raise money from the market by placing its own shares out there. If selling shares is a considered option, there is no guarantee that the shareholders will sell, so the volume of trading will be low and the shares will not be very attractive," Mihai Fercala, president of SIF Transilvania and one of the representatives of the five SIFs in the BCR's Supervisory Board, told ZF.