ZF has found from market sources that 40 people want to run for a seat in the Bucharest Stock Exchange Board. The inflation of candidates highlights the desperate situation of the local capital market today: most brokerage firms are operating at a loss, and the state-run companies’ stock offerings and sales of assets by Fondul Proprietatea are the only things that get investors to spend.
Scheduled for December 14, the elections for the Board will come at a time when the stock market in Bucharest celebrates 20 years from reopening. As a paradox, the Bucharest Stock Exchange did best during socialist governments: former President Ion Iliescu was the man behind the mass privatizations in mid-nineties, while the brokers were unable to keep those companies trading, watching idly as they delisted one by one. The regional investment funds (SIF) are thought to be the most likely to call the shots on the Bucharest Stock Exchange.
“If the SIFs manage to agree on what they want, we might see radical changes in the Board. Even Ludwik Sobolewski’s position as chief executive officer if significant changes are made to the Board,” a fund manager said.
Same names stand out from dozens of potential candidates. Lucian Anghel, the current president of the Board will run for a new term. The candidates backed by the SIFs, which now own 20% in the Bucharest Stock Exchange are said to be Claudiu Doros, vice-president of SIF Moldova (SIF2.RO) and Marius Moldovan, executive vice-president of SIF Transilvania (SIF3.RO). A candidate thought to stand chances of becoming president is Bogdan Dragoi, president of SIF Banat-Crisana (SIF1.RO). Banca Transilvania group’s candidates are Paul Prodan, the chairman of brokerage firm BT Securities, as well as Radu Hanga, member of SIF Moldova management. Erste funds’ has a candidate, as well, Dragos Neacsu, the chairman of Erste Asset Management, the largest mutual fund manager in Romania.
(English version by Loredana Fratila-Cristescu)