No budget and 10m-euro losses for Rulmentul

Shareholders of Rulmentul Brasov, a bearing manufacturer, did not approve the spending and revenue budget and the company”s investment plan for 2006. These two items on the agenda of the General Meeting of Shareholders were rejected by AVAS, the majority shareholder of Rulmentul, which recently received a break-up proposal from minority shareholders. “AVAS, which voted by proxy, was against it, without giving reasons for this decision,” stated Nicolae Rusu, representative of the minority shareholders in the Board of Directors. Last year, Rulmentul saw losses worth 39.4 million RON (10.9 million euros), a 22-fold increase against 2004. The company”s turnover stood at 127.4 million RON (35 million euros) last year. Minority shareholders of Rulmentul Brasov suggested to the AVAS that the company be asymmetrically divided into three companies. According to the break-up project proposed by the minority shareholders, the first company would take over the production and bearings plant, as well as the debts and penalties owed to AVAS, which it will possibly turn into shares. AVAS would therefore control over 90% of the resulting company. ZF