The privatisation of the largest bank in Romania, Banca Comerciala Romana (BCR), the last major asset still held by the Romanian state, has unleashed a fierce clash among the big law firms hoping to represent the major European banking groups interested in the sale.
All the big names in legal services - Linklaters, Nestor Nestor Diculescu Kingston Petersen, Musat & Asociatii, Tuca & Asociatii - have already found a place in the negotiator teams representing the state and the future investors. In doing so they will play a part in the most important transaction of the year for Romania and collect a fee that could reach several million euros. The BCR transaction will exceed 1bn euros, analysts say.
If they receive a 1% fee, the consultants in the transaction stand to collect at least 10 million euros from the sale. For advisors to the buyer, the success fee could exceed that collected by the state''s chosen consultants.
In the case of Petrom, consultants received a 22 million-euro success fee from the sale of 51% during the privatisation, while the sale of Distrigaz Nord and Distrigaz Sud for 615 million euros saw advisors receive approximately 10 million euros.
As the deadline for submitting letters of interest approaches (it is set to expire on July 7), so the pressure increases on those banks planning to join the race for BCR and yet to put together their consultant teams.
In the sale of BCR every competitor is trying to obtain the best possible position, both during the bidding and behind the scenes. The chairman of French bank BNP Paribas, one of the contenders for BCR, is currently in Bucharest for talks with Premier Calin Popescu-Tariceanu. A delegation of high-ranking Deutsche Bank officials also met the Prime Minister this spring.
With RomTelecom, Dacia, Sidex, Alro and Petrom already privatised, lawyers are now locked in battle over the last major asset that will be put up for sale by the state after the privatisation era in Romania nears an end.
The state is expecting investors either to bid for a 50% stake plus one share, or go for the maximum on offer of 61.88%.
Two weeks before the official start, a number of "troops" have already been deployed in the battle for a business that could change the makeup of the entire banking market.
The state is using Daiwa as a consultant and the law firm Nestor Nestor Diculescu Kingston Petersen as a legal advisor.
The UK legal services giant Linklaters, which is also one of the leaders on the domestic market, will represent Italian bank Intesa, after having initially approached one of the big favourites, Germany''s Deutsche Bank.
Deutsche Bank is using the services of Tuca & Asociatii, after having been offered services by other firms, including Salans and Badea, Georgescu & Asociatii.
UniCredito Group of Italy, which is also rated as a favourite, has taken on Musat & Asociatii as part of its negotiator team. HVB of Germany normally employs Austrian law firm Wolf Theiss for its acquisitions in Eastern Europe, where they recently provided assistance for the merger with Banca Tiriac.
adrian.mirsanu@zf.ro
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