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Court decision knocks shares in Romanian fund

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BUCHAREST, Oct 11 (Reuters) - A Bucharest court overruled adecision by shareholders in Romania's Fondul Proprietatea, raising doubts among investors over the running of thefund and sending its shares down 3.4 percent on Thursday.

The court ruled on Wednesday that the 2010 appointment ofasset manager Franklin Templeton as administrator of FondulProprietatea, created to compensate people whose property wasseized under communism, was handled incorrectly and thereforeinvalid.

The ruling prompted some traders to question how the fundwould be run in future, even though Franklin Templeton said itwas still acting as administrator to the fund, as shareholdershad since met to appoint it in a new process that complied withregulations.

"The court's decision is bad news for the market. It ispossible Fondul Proprietatea share price will be volatilebecause of uncertainty after yesterday's decision," said ManuelaOgrinja from EFG Eurobank Securities in Bucharest.

Fondul's fall helped pull down the Bucharest stock exchangeindex , which lost 1.4 percent.

The multi-billion euro fund holds shares in utilitiesTransgaz and Transelectrica as well asdozens of other Romanian energy companies.

(Reporting by Ioana Patran; Editing by Helen Massy-Beresford)

((ioana.patran@thomsonreuters.com)(+40 21 305 52 65)(ReutersMessaging: ioana.patran.thomsonreuters.com@reuters.net))

Keywords: ROMANIA FONDULPROPRIETATEA/