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Auto & Transporturi

Romanian Government Inks Brokerage Deal For Tarom IPO

The Romanian Government reversed its decision to cancel the auction selecting a broker for the sale of a 20% stake in airline Tarom, after the rejected sole bidder changed its offer and halved the commission it requested.

Andrei Cîrchelan · 5 decembrie 2011 · 1 min de citit

The consortium, fomed of brokerage firms Carpatica Invest and Swiss Capital, former KBC Securities, initially asked for a 3.99% commission if the stake was sold for at most EUR20 million. The commission would then be added with a percentage betwen 1% and 3% for the sum obtained above EUR20 million in the transaction.

Early-November, Transport Minister Anca Boagiu said the auction for a broker was cancelled, since there was only one bid, which was “incompliant and expensive”.

The cancellation of the auction and a new auction were decided in a Government meeting on November 9.

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