Court decision knocks shares in Romanian fund
BUCHAREST, Oct 11 (Reuters) - A Bucharest court overruled a decision by shareholders in Romania's Fondul Proprietatea , raising doubts among investors over the running of the fund and sending its shares down 3.4 percent on Thursday.
The court ruled on Wednesday that the 2010 appointment of asset manager Franklin Templeton as administrator of Fondul Proprietatea, created to compensate people whose property was seized under communism, was handled incorrectly and therefore invalid.
The ruling prompted some traders to question how the fund would be run in future, even though Franklin Templeton said it was still acting as administrator to the fund, as shareholders had since met to appoint it in a new process that complied with regulations.
"The court's decision is bad news for the market. It is possible Fondul Proprietatea share price will be volatile because of uncertainty after yesterday's decision," said Manuela Ogrinja from EFG Eurobank Securities in Bucharest.
Fondul's fall helped pull down the Bucharest stock exchange index , which lost 1.4 percent.
The multi-billion euro fund holds shares in utilities Transgaz and Transelectrica as well as dozens of other Romanian energy companies.
(Reporting by Ioana Patran; Editing by Helen Massy-Beresford)
Keywords: ROMANIA FONDULPROPRIETATEA/