CEC in talks to take over Asiban

The management of the Romanian Savings Bank (CEC) has been authorised by the bank’s majority shareholder, the Economy and Finance Ministry, to start negotiations for the takeover of Asiban insurance company, stated Sebastian Vladescu, secretary of state with the Ministry. “Asiban would be a good acquisition for CEC, but at an acceptable price, in line with market conditions. The CEC chairman is authorised to start negotiations and has already had his first discussion with the representatives of the other shareholders in the insurance company,” said Vladescu, a member of CEC’s board of directors. CEC owns 25% in Asiban, while the other shareholders, BRD, Banca Transilvania and BCR group, which decided to sell, each own 25%. “It’s the shareholder’s wish and I’m acting on their behalf,” Radu Ghetea, CEC chairman, told ZF. The consultant chosen by the three banks selling their stakes is European investment bank Rothschild, while legal assistance is provided by Tuca Zbarcea & Asociatii law firm. In line with the insurance firm’s charter, CEC is allowed to exercise its pre-emption right. Sources close to the transaction maintain, though, that CEC would have difficulties in taking over Asiban given that a too high price would create exposure problems for the state-owned bank.