Reasons for $435m loss

The sharp decline of the Bucharest Stock Exchange and of RASDAQ over the last few weeks is due to the recent changes made by the Government in the securities law, says the Association of Shareholders in Romania (AARO), representative of the minority shareholders. However, market analysts do not share this opinion. The modifications came as a result of the lobbying by the Foreign Investors Council, supporter of the majority shareholders, in connection with the mandatory public offers put out in order to have the companies controlled more than 90% by the majority shareholders delisted. The legislation changes made two weeks ago severely limit the ways the minority shareholders can challenge the price offered by the majority shareholders. “The recent changes induced distrust in the legislative stability of the capital market and led to an overall decline in interest in the securities market,” Gratiela Iordache, AARO executive manager says. ZF