How many shares will Petrom unionists hold?

The powerful union of SNP Petrom, the largest company in Romania, might lose its right to buy 10% in the company at a par value of 1,000 ROL/share upon privatisation.
An emergency ordinance issued by the Ciorbea Cabinet in 1997 and still in force grants Petrom employees pre-emption rights for buying up to 10% in the company paying only the 1,000 ROL face value per share. Considering the current Stock Exchange quote, 1,310 ROL, the Petrom union would stand to gain 30% or some $40 million if it bought at 1,000 ROL. Petrom’s market capitalisation now reaches $1.46bn.
Capital market sources say the Federation of Free and Independent Unions of Petrom already holds 1 to 1.5% in the company, which it bought from the Stock Exchange. The unions bought shares at a price below the par value. Petrom’s quote a year ago was 400 ROL. The union leader is Liviu Luca, one of the most influential people in Romania.
The Romanian State undertook to privatise Petrom, for which reason it hired a consultant last December to appraise it and suggest privatisation methods. The consultant is comprised of the Credit Suisse First Boston and ING Bank investment banks. Under the current legislation, the controlling interests in the company may not be sold.
The Office for State’s Interests and Industrial Privatisation says the consultant’s duty will be, among others, to suggest modifications to the normative acts so that privatisation can be perfectly legal.
The State has previously attempted to privatise Petrom in 1999, but failed to do so. Back then, a consortium of Romanian businessmen (Dan Voiculescu, Sorin Ovidiu Vantu and Gelu Tofan) submitted a bid.
Officials with the Industry Ministry, the principal stockholder of Petrom, estimate Petrom’s privatisation to be concluded some time in 2003.
This year’s forecasts show some 75,000bn ROL ($2.01bn) turnover and 1,899bn ROL ($50.9 million) profit, indicators calculated at an average exchange rate of 37,271ROL/USD.