On the occasion of an extraordinary general meeting of shareholders, convened by Ilie Carabulea and Corneliu Tanase, the biggest shareholders in the bank, the board asked to be empowered by shareholders to negotiate a possible tie-up.
Carabulea firmly rejected such a proposal, but he can no longer vote after the Romanian central bank suspended his voting rights as he was detained in the Carpatica Asig file.
Carpatica board maintains a merger would give the bank growth resources and also hints the bank’s financial situation is not as sound as the past two years’ profits show.
“The improvement of our financial situation is not sustainable, yet, to the end of securing a comfortable and prudent capital basis, which is also necessary for us to attain our future growth plans. This happens as profit is mainly generated by financial assets and fiscal exemptions, while provisions and bad loans are still above the banking sector average,” the managing board’s note also reads.
While the bank in 2013 overshot operating income and net income targets, the other operating indicators slid. Profits mainly came from reassessment or sale of T-bills part of the bank’s portfolio and from fiscal incentives granted by the state.
Carabulea, in conflict with the managing board and the supervisory board because of the merger proposal, asked for the number of members in both boards to be cut from five to three.
The managing board, disagreeing with the proposal of the two shareholders, came up with its own stipulations rejecting their arguments.
Carabulea will not be able to vote in the April 10 general meeting of shareholders as the central bank suspended his and Tanase’s voting rights.
(English version by Catalina Apostoiu)