The third postponement of the deadline for the completion of BCR's privatisation transaction has hurt both Erste Bank's shares and the prices of the futures contracts tied to the shares of the SIFs (Financial Investment Companies), BCR's minority shareholders.
Erste shares witnessed a fluctuation of approximately 1.1% on the Vienna Stock Exchange, from a 46.66 euros/share low, to 47.20 euros/share high. A sharper decline happened at 14.00 (CET) in Vienna, when the first rumours about the new delay surfaced. Quotes later rebounded, and then fell again, towards the day's low.
At the same time, prices of futures contracts, with SIF shares as underlying assets, due in September on the Sibiu Exchange posted significant declines yesterday, with brokers even talking about "panic" sales.
"Given the announcement about the deadline for completion of BCR's privatisation being pushed back, people started selling on the futures market out of panic, with prices of contracts due in September decreasing 0.07-0.08 RON compared with the opening quotes, and eventually dropping below those on the spot market," said Adrian Ceuca, deputy chief executive of Broker Cluj.
The deadline for completing BCR's privatisation got its third extension yesterday: the new date both for the authorities and the buyer, Erste Bank, is pencilled in for October 20, two months before the first anniversary of the signing of the contract.
"The extension of this deadline was decided at the suggestion of the Privatisation Committee of Banca Comerciala Romana and had been previously agreed upon by all parties involved the bank's privatisation," stated Oana Marinescu, Government's spokesperson.
As agreed with Erste Bank, by the time the deal is finalised, a normative act that has the same force as a law has to be enacted and published in the Official Gazette, which should include the necessary provisions to implement the Contract and whose content should be deemed reasonably satisfactory by both parties.
Erste Bank yesterday confirmed all the other conditions had been fulfilled.
Michael Mauritz, Erste Bank spokesman, told ZF that the payment of the 2.2 billion euros that the state should get, which is now in an escrow account with Citibank London, would be made only after the law in question had been published.
On the other hand, he says Erste Bank's results for the fourth quarter may include BCR's figures.
The failure to meet the third finalisation deadline was caused by the fact that the Constitutional Court could not make a decision about the challenge filed by a group of 39 opposing Senators against the Government Ordinance on BCR's privatisation. The vote was tied, 4 to 4, as the Court still has one vacancy to fill.
A new deadline to resume voting is yet to be set. Mediafax news agency reports the procedure will be possible to resume only after the ninth member has been appointed, with the respective position vacated by resignation on April 7.
Naturally, Erste Bank yesterday announced it expected the Constitutional Court to make a favourable decision, with bank officials expressing hope the completion was anticipated to go ahead "at the earliest possible date", following the promulgation and publication of the BCR privatisation law.
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