(story to be published in tomorrow’s issue, March 8)
The bid launched by Cypriot company New Marathon Tours for all the shares of former ONT Carpati on February 23, was labelled as “unrealistic” by traders even from the beginning, as the price offered for one share of the former Carpati National Tourism Organisation was almost 7,000 lei lower than the reference price registered on the market (26,672 lei/share) over the same session. The bid launched by New Marathon is open between February 23 – March 13, on Rasdaq market, the price offered by the company for one share being 20,000 lei. Transilvania financial investment company will not answer the bid of the Cypriot company, according to some sources from the management of the company. “The higher the price we will obtain for the 72 percent stake held by SIF Transilvania, the better for our shareholders, but it is certain that we will not sell for 20,000 lei/share,” the above- quoted sources said, without pointing out a price that would correspond to SIF Transilvania’s expectations. “The appreciation registered by these shares over the last trading sessions has a speculative background and it is very likely that even small investors might prefer a Hold position for the time being,” said Mihai Grigore, a trader with BRD Invest. At the beginning of this month, the reference price of ONT Carpati shares registered a strong growth up to a level of about 50,000 lei/share, 150 percent higher than the bid of the Cypriot company. The funds used by the bidding company for the purchase of the shares worth 23.32 billion lei are derived from the company’s own funds. Moreover, the bid proposal reads, the company submitted the 30 percent guarantee of the funds’ value, according to legal stipulations in effect. According to the same proposal, if the bid proves successful, New Marathon Tours plans to modernise assets so that they might attract foreign tourists. The bidder also has in view the introduction of a rational management concept and the company reorganisation. ONT Carpati has a share capital of 29.15 billion lei divided into shares with a nominal value of 25,000 lei. The significant shareholders of the company include only Transilvania financial investment company with the main stake of 72 .88 percent, the rest of the shares belonging to small investors. The company operates in tourism and is specialised in land transports. ONT Carpati shares have been traded on Rasdaq market since June 30, 1997, the reference price registered during Monday’s trading session being 51,540 lei/share.