* The mergers or acquisitions of other companies are out of the question

The management of the Bucharest Stock Exchange wants to conduct stock buyback programs in the coming years in order to motivate its employees and managers, according to the draft budget published by the BSE for 2012.

Valentin Ionescu, the former managing director of the BSE, told us that last year, he had proposed to the Board to buy back shares in the company, which would be then used to motivate the employees, but his proposal was rejected.

"I proposed to the former Board of Directors the buyback of 10% of the company's shares. 2-3% of those shares would be used as incentives for the employees of the BSE, to make them feel like they were part of the company, and the remaining shares would either be kept or cancelled".

The General Shareholder Meeting scheduled to take place on April 25th, the shareholders will discuss the proposal to buy back 76,740 shares of the BSE, representing a maximum of 1% of the share capital of the BSE, with a face value of 10 lei/share, at a minimum price of 20 lei and a top price of 50 lei, over a period of 18 months, starting from the date of the publication of the shareholders' decisions.

The investment schedule for 2012 mostly provides investment in IT infrastructure and the improvement of the current office space, and that the company will focus on organic development, but mergers or acquisitions of other exchange operators are not being considered.

The representatives of the Stock Exchange estimate an operating profit of 7.645 million lei, up 20% over 2011.

"The budget of the BSE for 2012 expects a 16% turnover increase, whereas expenses are expected to grow less than 15%", according to the previously mentioned report.

For this year, the BSE estimates a financial profit of 5.055 million lei, down 59% over 2011. @N_