The authorities' method to privatise Romania's largest company, SNP (National Oil Company) Petrom is fiercely contested by the powerful association of the company's employees, led by Liviu Luca.
The apple of discord is the stake to be bought by the company's employees, but also the price: the employees want 10% of Petrom shares at their face value, whereas the state is offering eight percent in two stages, for the price paid by the selected investor upon privatisation.
Petrom employees could earn some $42 million from the price gap, if they pay a price equal to the stock's market quotation - SNP Petrom shares are priced at 1,400 ROL each on the Bucharest Stock Exchange. Their dispute with the Ministry of Economy and Trade could even go to court if negotiations reach a dead-end, warns Liviu Luca, leader of the employees' association and of the powerful Federation of Petrom Free and Independent Trade Unions (FSLI). FSLI already controls 1-1.5% in Petrom, according to market information.
"I think there will be some negotiations. If not, we'll go to court," Liviu Luca told Ziarul Financiar.
In the meantime, the company's privatisation has reached the shortlisting stage, as fifteen bids were submitted by companies such as ConocoPhilips, Halliburton (USA), Gazprom (Russia), Ei (Italy), Russian-British consortium TNK BP, but also by regional companies such as MOL (Hungary), PKN (Poland), OMV (Austria) and Hellenic Petroleum (Greece), all set to take over 51% in Petrom.
The Petrom Employees Association, led by Liviu Luca, has sent an administrative contention to the Government, requesting the partial cancellation of Government Ordinance 55, released in August, regarding certain measures enforced for the privatisation of SNP Petrom. They deem the normative act as "partially illegal," which "the Government used to create general chaos."
The cut in the stake that was supposed to be bought by the company's 60,000 employees is "abusive and lacks justification of any kind, thus breaching a right earned by the employees of this company who, perhaps more than anyone, would be entitled to buying the shares of the company they work for," say the leaders of the employees association.
Moreover, they fear even the 8% stake stipulated in the ordinance may be slashed.
Petrom has capital worth 37,734bn ROL (more than one billion euros), divided into shares with 1,000 ROL face value. The Ministry of Economy and Trade holds 92.96% in the company. adrian.mirsanu@zf.ro
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