"Shares drop because investors who purchased these in spring in anticipation of the privatization began selling," the Director of Operations of brokerage house Estinvest, Marcel Murgoci, told Business Standard. Investors who were betting on the conclusion of the five-time-delayed privatization process, who bought shares at the beginning of the year, had a 329.09 percent yield.
Engine producer Electroputere Craiova was acquired by the Al Arab Contracting group, for €120 million. The Romanian state will collect only €2.3 mln, and the Arab investor will assume debts in the amount of €44 mln and commercial guarantees to the banks worth €20 mln. "It is possible that some investors were scared off by clauses in the contract. This document will probably be subject to approval by the European Union, which will further delay the process," added Murgoci.
