The Proprietatea Fund on the Vienna stock exchange
Date: 25-01-2010
The Czech in Wood &Company issued in December last year warrants with Proprietatea fund shares, which they trade on the Vienna stock exchange, according to information on the local brokerage market, coming from the Bloomberg data. “ By judging simply, it is as if they trade the shares. What does it show? The efficiency of the financial markets is the fact that there is a need for an attractive financial instrument which could be used irrespective of the borders or legislative chaos by those who know how to and have sufficient funds. We don’t know how to do that, but it would not be bad to learn” Nicolae Ghergus, general manager at Confident Invest stated to Wall-Street. The representatives of Wood explained that it is not a retail product and the mass-marketing would be illegal. He is destined to a limited number of institutional clients of the Czech company. Wood issued on 4 December 2009, 943,800 such instruments, at the price of 36 euro. The maximum price was 36.3 euro reached in the yesterday session and the minimum was 35 euro on 17 December 2009. In the stock exchange Vienna there were traded lots of 1000 warrants ( 1w= 500,000 shares), which takes the price of that kind of package to 36,000 euro. At the maximum price of Tuesday, a lot cost 36 300 euro.
At the end of last year, the Proprietatea Fund officials proposed to the shareholders to trade on the Romanian Over-the-counter, a project proposed by Brokers’ Association, meant to organize and made transparent the exchanges with FP. “ The shareholders of the Proprietatea Fund were presented with the ROTC platform but they refused it, manipulated by some “ experts” on the financial markets at the debate organized last year by the executive, with the reason that listing on a different system than the NYSE or LSE would reduce the price of the shares”.
This is how a derivative financial instrument is traded – the real value of the bonds cannot be hidden and which is neither smaller nor bigger than the real one”, Ghergus said. Now it happens that Wood&Co trades its warrants on one of the markets in Vienna and the shareholders of Proprietatea Fund sell their shares on the Stefan Furtuna market and live with the hope that they will be listed at least in Bucharest with the trust in international experts, the broker said.
The shareholders of Propriteatea Fund approved on 7 September the management contract with the American investment fund Franklin Templeton, in the context where the representatives of the majority shareholder of the Fund, the ministry of finances were present at the meeting, but later on the finances forced the renegotiation with the Franklin Templeton contract.
Proprietatea Fund was created in 2005 as a solution to reimburse the former owners who lost their properties to the communists who could not be repaid as such. The fund has shares at 88 companies, most of them in the energy domain.
The state promised at the creation of the Fund to list FP on the stock exchange in Bucharest and on an international market, which would have allowed the shareholders to use the bonds. But the listing term was postponed, the latest statements showing that the listing would be made in 2010.
