The fund has a portfolio of 88 Romanian companies and cash totaling some €4 billion. Its main shareholder is the state, through the Ministry of Economy and Finance, with 85 percent of the stock, while the remaining 15 percent is owned by individuals. The problem is that the difficult selection process would have to start over again, if a top financial market player, chosen to manage Fondul Proprietatea, were to declare bankruptcy, something no one is safe from in these troubled times. The winner of the tender for Fondul Proprietatea management is set to be announced in February 2009, and the process could be finalized in March, with the conclusion and approval of the managing process. “The selection process includes a subjective note, as all the criteria cannot be valued strictly based on figures alone,” Vladescu said. He spoke about “the trust element, which is established through direct contact with the bidders,” and “the management quality.” 28 investment banks and consortiums have submitted letters of intent for the Fondul Proprietatea management tender. Based on a score set for their initial offers, a short list of up to five candidates was made. Of these five, two or three finalists are to be chosen, while the winner will be determined early next year. Among investment banks interested in managing Fondul Proprietatea were Lehman Brothers, which recently went bankrupt, Merrill Lynch, which was taken over by Bank of America, Fortis, and Royal Bank of Scotland, the latter two recently nationalized. (A.I.)
