Three banks vying to fund Luca

Three major investment banks have been selected for talks in view of lending more than 235 million euros to Petrom”s employees for buying shares in the company. “UBS, Credit Suisse First Boston and Deutsche Bank are the banks still in talks for the funding,” sources close to the deal told Ziarul Financiar. The employees, headed by the powerful union leader Liviu Luca (photo) are entitled to buy up to 8% in the petroleum company Petrom, with the stake worth no more than approximately 235.2 million euros. Petrom”s employees will buy the shares at the same price as paid by Austria”s OMV when acquiring its 33.34% last summer, that is about 5.25 cents each. Liviu Luca is the leader of the Federation of Free Unions of Petrom, as well as the chairman of the Employee Association. It is from this latter position that he will negotiate the acquisition of the shares by the employees. OMV last summer acquired 51% in Petrom in a 1.5bn-euro deal. Early this year, Liviu Luca started the talks over finding a lender in view of the purchase of the stake in Petrom. The banks approached included Banca Comerciala Romana (Romanian Commercial Bank – BCR), Raiffeisen Bank, JP Morgan, UBS, Credit Suisse First Boston and Deutsche Bank, the union leader says. ZF