Textile company Siretul Pascani concluded last year with net profit of 17.4 billion ROL ($0.5 million), close to the value posted in 2002. However, the company's shares, which are listed on the Bucharest Stock Exchange (BSE), have actually seen their price go up four times since early this year. The evolution can be grounded on the disappearance of the major shareholder, as the Employees' Association (EA) was dissolved, which puts Siretul on the map for a future takeover.

Siretul also logged slightly bigger turnover in nominal terms, up to 450 billion ROL, according to the preliminary financial data for 2003. The company's sales had accounted for 404 billion ROL the year before.

The rising prices for the company's stock were a consequence of keener interest from investors, as the Employees' Association was dissolved after fulfilling the obligations stipulated in the privatisation contract.

While Siretul no longer has a main shareholder, brokers on BSE say investors are expecting a public takeover offer for the company's shares, sooner or later. The lack of a main shareholder has prompted Banca Transilvania to buy a 5.7% stake in the company. Siretul also attracted the Cluj-based brokerage firm Broker, which holds a stake of 6.4% and Cristian Dicu, a third significant shareholder who is a natural person and controls 6.8%.

The buyers' strong interest cancelled the pressure exerted on the stock market by the company's employees, who were selling their shares. The members of the Board alone sold Siretul stakes totalling 8% in the company's capital, while their remaining stakes dropped under one percent. vlad.nicolaescu@zf.ro

Textile company Siretul Pascani concluded last year with net profit of 17.4 billion ROL ($0.5 million), close to the value posted in 2002. However, the company's shar