Steilmann wants to persuade Coral shareholders

(story to be published in tomorrow’s issue, March 10)

The Romanian branch of the largest European clothes manufacturer, the German company Steilmann, on Wednesday launched a bid for all the market shares (55.29 percent) of Coral Mod from Constanta. The tender is opened on Rasdaq market between March 8 – April 6, the price offered by the German company for one Coral share being 10,000 lei, significantly lower than the nominal value of the shares – 25,000 lei. “It is unlikely for the shareholders to welcome Steilmann’s bid, taking into account the fact that the shares have lately been traded on the market at 7,500 lei/share,” said Ioan Gheorghiu, a trader with BRD Invest. Small shareholders also hold about 24 percent of Coral Mod shares, a fact which can guarantee at least a partial success of the bid. Steilman does not intend to liquidate the company, but plans to make investments worth 6.35 billion lei for the modernisation of storing spaces, the expansion of production capacities and the construction of a canteen for the company’s employees. Coral Mod has a share capital of 3.15 billion lei. The significant shareholders of the company include Steilmann Bukarest, with a stake of 44.70 percent of the shares, the State Ownership Fund with 19.66 percent and Bries Vasile with 10.97 percent of the capital, the rest of shares belonging to small shareholders. Coral Mod shares have been traded on Rasdaq market since January 13, 1997, the reference price registered on Tuesday March 7, being 7,500 lei/share.