Romanian state demands annulment for Romtelecom privatization consultancy contract

The Communication and IT Ministry demanded the investment bank Credit Suisse First Boston (CSFB) the mutually agreed annulment of the financial consultancy contract signed for the privatization of Romtelecom’s last shares. Romtelecom is the major operator for wired telephony in Romania and has the state as shareholder with 45.99%

The decision was taken on Thursday by the IT&C Minister Zsolt Nagy, who also sent a letter on the subject to the board at Credit Suisse First Boston.

“The decision comes due to the fact that the Romteleom listing on the stock market can not take place without the full confidence of potential investors. Any doubt means a seriously affected IPO”, sad Zsolt Nagy.

The IT&C Minister took into account the fact that several CFSB collaborators are currently involved in the huge energy-related privatizations scandal in Romania.