Business Review No.44, December 12 - 18 by Business Review

3Q: Florin Godean, country manager at Adecco Romania, says the recruitment company plans to expand its existing network of 13 offices country-wide next year in order to capitalize on a mobile work force »page 3

XMAS SHOPPING LET BR TAKE THE STRAIN OUT OF THE FESTIVE SEASON WITH A GUIDE TO THE BEST PLACES TO PICK UP GIFTS FOR YOUR LOVED ONES THIS XMAS

ROMANIA’S PREMIERE BUSINESS WEEKLY

DECEMBER 12 -18 , 2011 / VOLUME 14, NUMBER 44

»PAGE 18 NEWS

Hard cell Amid local denials, media reports reveal the Bucharest location where the CIA had a secret prison for terrorism suspects » page 4 NEWS

Game for it Vodafone Romania launches an interactive online video game for the business segment » page 6 LINKS

Mobile maneuvers BR reviews how local operators have fought for their share of a shrinking market » page 16 PLUS

RETAIL • FMCG • HEALTHCARE • TELECOM • PROPERTY • MEDIA • AUTOMOTIVE • ONLINE

The local M&A market has not seen spectacular growth this year, which pundits say is due to the gap between the expectations of sellers and buyers. As expected, many of the deals involved insolvent or distressed companies, but the M&A market should bounce back next year, provided that Romania’s economic situation improves. »page 10

B reade R wishes its r seaso s a happy holida n. We y will be with t h b e a f c i r k 2012 s on Ja t issue of nuary 23rd.

English director Ken Loach’s powerful drama-thriller Route Irish finally reaches Romanian cinemas this week. Our critic reports » page 17

www.business-review.ro Business Review | December 12 - 18, 2011

3Q Florin Godean

NEWS 3

NEWS in brief IT& TELECOM PwC to provide consultancy for Romtelecom listing evaluation

Country manager, Adecco Romania

How many offices does Adecco have in Romania and do you have expansion in sight for 2012? Adecco has a network of 13 offices in Romania, but the expansion plans will continue next year. We will open two more offices in 2012. We have the largest network of offices, allowing us to serve clients in any city. A large network is an asset for a local company, as the work force has proven mobile, especially recently. In addition, a company with many work points can benefit from uniformization of quality and prices across the country. How has the recruitment market evolved this year and what industries/companies have requested temporary staff? The recruitment market is on a growth trend that will continue next year as well. In Bucharest, companies involved in outsourcing and call center services are the largest users of temporary workers, while in the rest of the country the demand comes from the automotive and electronic components industries. The temporary work contract segment has benefited from the introduction of the new Labor Code through improved perception, bringing real benefits both for employee and employer. The new Labor Code is welcomed, but it hasn’t brought anything new, the only legal addition being the fact that it unitary regulated something that was in one way or another, already in the market, through different contract relations that exist on the local labor market. ovidiu.posirca@business-review.ro

Photo: Laurentiu Obae

What turnover has Adecco Romania reached this year and what is the forecast for 2012? Adecco entered the Romanian market in 2000. Since then, the turnover has grown continuously. This year has been no different from the previous ones, as we had an increase in proﬁts as well as the increase of turnover. Based on our data, Adecco has an 18 percent market share. In 2012, a new recession is expected at a European level, but this will positively impact the local market, as some multinational companies will transfer part of their production here, due to the low costs of human resources and raw materials. In this context, we predict a growth in our market share next year.

IMAGE of the week Holiday lights bring eco spirit to the streets of Bucharest Bucharest is this year displaying eco-friendly Christmas lights, which adorn the bustling Gheorghe Magheru and Kiseleff boulevards, among other thoroughfares. This winter, more than 2.5 million LED bulbs will bring the holiday spirit to the city, along with festive themed holographic projections on historic buildings. The series of Christmas lights stretches from Unirii Square to the Baneasa Airport area.

AGRICULTURE Romania to resume pork exports to EU next year The European Commission (EC) will allow Romania to resume pork exports to EU countries in January 2012, nine years after the restriction was imposed. Valeriu Tabara, the Romanian agriculture minister, told Mediafax that he expected pork exports to reach tens of thousands of tons from 2012. Romanian pork exports to the EU market have been banned since 2003 due to swine flu. In 2007, the EC decided to extend the ban, saying the disease was still an issue.

ENERGY Property Fund wins ruling against creation of energy giants The Property Fund has won a final ruling against the establishment of the energy giants, Electra and Hidroenergetica. Over the last 12 months, the fund, represented by law firm Popovici Nitu & Asociatii, has secured four favorable preliminary injunctions against Hidroelectrica, Nuclearelectrica, Complexul Energetic Turceni and Complexul Energetic Rovinari, thus blocking shareholders’ decisions approving the creation of Electra and Hidroenergetica. Late last month, the Court of Appeal of Craiova irrevocably upheld the Property

Fund’s final appeal, overruling the reorganization decision of the shareholders of Complexul Energetic Craiova.

HEALTHCARE MedLife opens EUR 8.5 mln orthopedics hospital MedLife has opened the Orthopedics and Trauma Hospital, the first private orthopedics hospital in Romania, following an investment of EUR 8.5 million. The threestorey hospital has a total surface of 2,000 sqm. The facility will employ 80 people, mainly doctors and nurses. MedLife officials estimate that the orthopedics hospital will treat approximately 1,000 patients a month in its first year of activity. Its turnover is predicted to reach EUR 2 million in the first year. The opening of the orthopedic unit is part of MedLife’s EUR 52 million investment plans for 2011-2015.

PwC has been selected by the Romanian state, via the Ministry of Communications, as the consultant that will represent the state in the Romtelecom listing process. Romtelecom is being represented by the law firm Stoica & Asociatii and Morgan Stanley Investment Bank. Under the contract, PwC will provide legal, economic and technical expertise, evaluating “the benefits of the proposed merger and listing on the stock exchange compared to other possible options for Romtelecom”. The EUR 200,000 deal will run for six months. PwC beat off competition from KPMG Romania, and a consortium made up of Deloitte, Bostina & Asociatii and Reff & Asociatii to secure it.

Euronet Worldwide buys card payment processor PayNet American electronic payments provider Euronet Worldwide, Inc. has announced the acquisition of Smart PayNetwork (PayNet). The firm provides integrated ATM outsourcing services, card issuing and acquisition and POS merchant servicing solutions to financial institutions in Romania. With a team of 44 employees it runs 720 ATMs and 1,700 POS (points-of-sale) terminals, managing approximately 540,000 cards.

ONLINE GreenLight Invest buys majority stake in Bunt Studio GreenLight Invest, the private investment fund controlled by businessman Ion Sturza, has taken over the majority stake in online development agency Bunt Studio, fund officials have announced. The fund is set to invest EUR 5 million in new online products and projects by 2015.

RETAIL Local Esprit stores close down AAV Group, owned by local businessman Vicentiu Zorzolan, has closed down the three existing Esprit stores in Romania, reports Mediafax. The company owns the local franchise for the Esprit, Springfield and Women’Secret brands. AAV Group saw its turnover plummet from approximately EUR 7.3 million in 2009 to about EUR 1.8 million last year.

CEO Clubs launches in Romania

Bene Romania estimates EUR 1 million turnover for 2011

CEO Clubs, a networking organization for top executives, has officially launched in Romania. At present, CEO Clubs Romania has 20 members, executives from the banking sector, FMCG, retail and construction. They include Ronald Binkofski, CEO Microsoft Romania; Gabriel Pantelimon, country manager Xerox Romania; and Murat Atay, general director of Garanti Bank Romania.

Austrian office furnishing company Bene forecasts that its local business will continue to grow in 2012 after reaching an estimated EUR 1 million turnover this year, compared to approximately EUR 900,000 in 2009. In the financial year that finished at end-January 2011, Bene reported global revenues of approximately EUR 170 million.

www.business-review.ro Business Review | December 12 - 18, 2011

4 NEWS INTELLIGENCE

Location of Romania’s secret CIA prison named by AP report

he CIA’s alleged secret prison in Romania was located inside a governmental building in Bucharest where the National Registry Office for Classified Information (ORNISS) is presently headquartered, according to an investigation by the Associated Press (AP) news agency and ARD, a German television station. “Former intelligence officials both described the location of the prison and identified pictures of the building,” reads the AP article. On Wednesday, a day before the news was published, Alison Mutler, AP’s correspondent to Bucharest, tried to address a question – believed to be related to the topic – to President Traian Basescu during a press conference, but he interrupted her and refused to comment. The existence of a CIA prison in Romania has been widely reported over the past few years, but until now no actual location had been revealed. The Romanian authorities have vehemently denied the existence of such a facility, but journalists and human rights investigators used flight records to tie Romania to the CIA’s secret prison network. Among those believed to have been detained and tortured in Bucharest are Mohammad and Walid bin Attash, implicated in the bombing of the USS Cole, Ramzi Binalshibh, Abd al-Nashiri and Abu Faraj al-Libi. The latter provided information that later helped the CIA to identify Osama bin Laden’s trusted courier and locate bin Laden himself. During the first month of their detention, the detainees were subjected to

sleep deprivation and doused with water, slapped and forced to stand in painful positions, several former officials told AP. However waterboarding was not performed in Romania, they said. After their initial interrogation, the detainees “were treated with care”, receiving regular dental and medical checkups and having Halal food brought in from Frankfurt. The Romanian prison was part of a network of so-called black sites operated and controlled by the CIA overseas, in Thailand, Lithuania and Poland. However, unlike the US agency’s facility in the Lithuanian countryside or the one hidden in a Polish military building, the CIA’s prison in Romania was not in a remote location, but was hidden in plain sight in a busy residential neighborhood, “minutes from the center of Romania’s capital city”. Senior ORNISS official Adrian Camarasan said in an interview in November that the building’s basement was one of the most secure rooms in all of Romania but added that the Americans had never run a prison there. ORNISS told Mediafax newswire that it denied the AP’s claims. The Romanian CIA prison was opened in the fall of 2003, after the CIA decided to vacate the black site in Poland, according to former US officials quoted by AP, who spoke on condition of anonymity. The CIA’s detention and interrogation program ended in 2009 but the prisons were all closed by May 2006. ∫ Simona Bazavan

FMCG

Unilever invests EUR 50 million in expanding local factory

MCG producer Unilever has invested EUR 50 million in the past two years in expanding the production capacity of its detergents factory in Ploiesti by 30 percent, the company has announced. The investment has allowed the company to increase exports of the Omo and Dero detergents to most European markets while at the same time reducing electricity consumption, said Marc Desefans, president of Unilever South Central Europe. The FMCG firm has announced a global sustainability program which will also impact its local business. The program’s main objectives will be to halve the environmental footprint of its products by 2020 and source all its agricultural raw materials sustainably. Unilever representatives said that worldwide consumers are increasingly demanding environmentally friendly and sustainable products and the trend is expected to grow in Romania too. Through this program Unilever is also looking to create partnerships with local farmers and producers, but says that this is difficult to do in Romania. In addition to detergents, the company

also manufactures margarine and seasonings at the Ploiesti plant, but it imports the dried vegetables it needs in the production process. Unilever representatives explained that no Romanian suppliers can consistently deliver the large quantities it requires in the production process of the seasonings. Unilever employs about 600 people in Romania, approximately 330 of whom work in its factory in Ploiesti. Unilever is present in Romania with brands like Dero, Omo, Coccolino, Cif, Domestos, Dove, Rexona, Axe, Clear, Signal, Delma, Rama, Becel, Delikat, Knorr, Hellmann’s and Lipton. Its turnover in Romania last year was around EUR 195 million. Desefans said that 2011 was a difficult year but that Unilever had managed to stabilize its local business despite general decreases in the FMCG market. He did not make a prediction about the financial results expected this year. Headquartered in Bucharest, Unilever South Central Europe coordinates the company’s business in Romania, Bulgaria, Serbia, Montenegro, Albania, Macedonia and the Republic of Moldova. ∫ Simona Bazavan

www.business-review.ro Business Review | December 12 - 18, 2011

6 NEWS TELECOM

Vodafone Romania launches interactive online video game V

Courtesy of Vodafone

odafone has launched in Romania the interactive online game Manager SRL, part of its communication platform for the business segment. The product is the first interactive online video game produced entirely in Romania. The cast includes actors who are part of the Vodafone campaign for the business segment: Vlad Ivanov (Sere), Elena Voineag (Carla), Ilinca Harnut (Ioana), Andrei Serban (Rares), Alexandru Gastramb (Oli) and Cristian Balint (Johnny). The game has been available from the operator’s website, www.managersrl.ro, since December 5. The gamer plays the role of a manager and makes decisions. Players who get more than 50 points are entered for a raffle to win a book about Steve Jobs. The game was developed by MRM, a division of McCann Erickson. Vodafone officials did not reveal the value of the project, saying only, “Given the size of the project, it was done very cost-effectively.” Richard Ihuel, director of brand and customer experience at Vodafone Romania, told BR, “I think we managed to do it at about 40-50 percent of the cost we would have paid in a Western European country like Germany, France or the United Kingdom.”

Laura Barbu, online marketing director at Vodafone Romania

Richard Ihuel, brand and customer experience director

Vodafone has more than a 50 percent share on the mobile communications business market. Six out of ten companies in Romania are clients of Vodafone, according to company officials. “In the overall revenues of Vodafone, the enterprise business makes up roughly half of the business here in Romania,” Benoit

Valla, director of enterprise marketing at Vodafone Romania, told BR. The Vodafone website received 1.7 million visits last month. The operator is pushing its online strategy with a view to reaching communities. The video game brings out the best of the online medium, “full HD video content, interactivity and

connectivity to social networks,” said Laura Barbu, online marketing director with the company. The game has not been tailored for mobile handsets so far, but such a version is planned. To raise awareness of the product, the operator has said it will use “one-on-one communication via tailored databases”. Ihuel added, “There is also another backbone to increase awareness of this game through e-mail marketing. We will purchase an additional database to contact other businesspeople.” He told BR, “We have our own database with e-mail addresses, but when you want do e-mail marketing you can stick with your own customers, or you can try to reach others. The primary objective was to increase knowledge and usage of our services within our own base but of course we are after more customers.” Vodafone Romania is the second largest telecom player on the local market with revenues of EUR 410.7 million in the first half of the financial year 2011-2012, ended September 30. At that date, the operator had over 8.5 million customers. ∫ Otilia Haraga

www.business-review.ro Business Review | December 12 - 18, 2011

8 NEWS ENTREPRENEURSHIP

IT&C

Social entrepre- HP Brand Store posts USD 800,000 sales in first year neurship gains H ground

Courtesy of Altex

ocial entrepreneurs are emerging in Romania and trying to fill the void left by the state, which is currently pursuing austerity measures that significantly impact the social services provided to people in need. This was one of the pronouncements made last week, during a fullday event organized by Rotract Triumph Club, called Rotract Sparks. The Motivation Romania Foundation, which started activity in 1995, opened the Motivation Medical Recovery Clinic this September, after taking out a loan from BCR. Manager Corina Bimbasa said patients are charged regular rates, and a percentage of the revenue is used to fund free treatment for financially challenged disabled patients. Magor Csibi, country manager at conservation and environmental NGO WWF Romania, argued that the term “social enterprise” was not applicable as it unites two contradictory things. “Enterprise is a word focused on individualism, while social implies talking about community.” Csibi also gave the results of a WWF Romania campaign to save the country’s virgin forests. In one month around 100,000 people signed a petition calling for the protection of 250,000 hectares of forest and 13,000 species. The next step will be to deliver the petition to the Ministry of Environment, which the NGO hopes will act. Julie Caulier-Grice presented the UK’s experience of social entrepreneurship through the Dialogue Cafe, where she acts as program manager. It uses video conferencing technology for the public good. There are three such cafes in Amsterdam, Lisbon and Rio de Janeiro through which topics such as the Arab Spring, aging and work styles have come under discussion. The purpose of this program is both educational and cultural. Caulier-Grice added that there are 62,000 social enterprises in the UK which contribute GBP 24 billion to the GDP and employ 800,000 people. Iulian Vacarean, of the Beneva Association, presented the initiatives he has taken in improving the lives of Romania’s disadvantaged. He raised EUR 30,000 through selling lemonade, with the funds helping the Marie Curie Hospital open a new facility. Vacarean also turned Matasari Street, formerly the scene of criminality, into a cultural hub. ∫ Ovidiu Posirca

P Brand Store, the first concept store opened by American company Hewlett Packard (HP) in South Eastern Europe, posted USD 800,000 in its first year since opening, in line with the company’s estimations. The shop had a profit margin of 2 percent, which is expected to grow next year. The EUR 130,000 store, which was opened in partnership with retailer Altex, is located in Plaza Romania shopping gallery. After opening the concept store in Bucharest, HP also set up other outlets in Zagreb, Belgrade, Moscow and Madrid. The two companies wish to expand their partnership by opening one or two more such stores on the medium term. However, officials from both firms said they have not yet decided on the locations for the new units. “Romania is a country with a unique IT&C market in South Eastern Europe,” said Eric Lallier, HP PSG EEM general manager. “This is a

Dan Ostahie maturing market with significant growth potential, with informed consumers and healthy competition among suppliers of IT&C solutions. Precisely these

conditions made it possible for the local PC market to continue to grow this year in a rather difficult macro-economic context, while other countries in the region are confronted with a decrease in demand, and, implicitly, in sales.” Altex estimates it will post EUR 200 million this year. In 2010, the firm registered a turnover of EUR 185 million. “With sales of over EUR 45 million in 2011, the IT sector has been significant for Altex over the last few years, and the growth rate was more than 30 percent compared to 2009,” said Dan Ostahie, president of Altex. HP had a share of more than 18 percent of the local PC market in the third quarter of this year, a 3.5 percent growth on the same period of last year. On the ink cartridge segment, HP has a market share of 60 percent, and a 36 percent share on the market of laser jet cartridges, according to IDC data. ∫ Otilia Haraga

Govt eyes top international headhunters to appoint private management for state-owned companies he Economy, Trade and Business Environment Ministry (MECMA) says it plans to attract top international executive search firms to select the CEOs for state companies included in the first stage of the program aimed at introducing private management of stateowned companies. The first companies set to get private management are Oltchim, Electrica, Hidroelectrica and Romarm. In order to attract experienced companies to handle the process, the ministry has set several criteria for entering the selection process for the headhunter. Participants need to have at least 30 offices worldwide and at least ten in Europe, plus an average turnover for the past three years of minimum EUR 40 million. For a consortium, the average turnover of an associate has to have been EUR 10 million or above for the past three years. The selection documentation stipulates a maximum estimated acquisition price for these services of EUR 250,000

per contract. The price for public auctions is usually lower than the estimated price due to the competition between participants. The final value of the contract includes, besides management recruitment services, the services provided by the executive search firm for the entire period of the contract and an additional twelve-month guarantee period. The value will cover travel and accommodation costs and interview-related costs for both the representatives of the executive search company and the candidates shortlisted for the final stage, for the contract and guarantee period. If the candidate resigns or the state company terminates the management contract due to the candidate’s fault, the executive search firm will search for and select a new candidate with no additional fee, within the limits of the contract. Recruitment firms will have three weeks (with a deadline set for December 23rd) to file all the documentation and the bid offer. At the end of the procedure

companies will propose to MECMA a shortlist of managers for each of the selected companies. The ministry is being assisted in the process of finding the international headhunter by executive search company Pedersen&Partners and its subcontractors, management consultancy company Roland Berger and law firm NNDKP. By establishing these criteria the ministry says it plans to attract and select the most proficient executive search firms, recognized within the international business environment for their expertise, turnover and results, but also their motivation to take part in the project – to ensure the successful recruitment of experienced CEOs, able to efficiently manage the selected companies. In the case of Electrica Furnizare and Oltchim, which will undergo a privatization process, the aim is to prepare them for this process and to receive the best prices from selling the relevant share packages. ∫ Staff

Bucharest library. By invitation only.

Hotel. Participation is free of charge, based on prior conﬁrmation.

roundtable “Romanian Real Estate market in 2012 – cultivating a strategic perspective”, at InterContinental Hotel. By invitation only.

BUSINESS AGENDA December 12 09:30 Finmedia and the National Bank of Romania (BNR), with support from the Romanian banking Association (ARB), organize the 14th Romanian Banking Forum at the BNR headquarters. By invitation only. 17:30 The British Council and ARDOR Muntenia organize a demonstrative debate competition at the British Council

19:00 The Volunteers Gala, which awards prizes to NGOs and public institutions that work with volunteers, is organized in Bucharest. More details at provobis.ro. December 14 10:30 AmCham Romania organizes an event to mark the launch of the Romanian Competitiveness Report at JW Marriott Grand

11:00 Printec Group Romania organizes a press brieﬁng to present the latest innovations and solutions in the self service area at Howard Johnson Grand Plaza. By invitation only. December 15 09:00 Medien Conferences organizes the

January 16 Green Power Academy organizes a one-day course on the challenges and solutions for large-scale wind penetration in the electricity generating mix in Bucharest. By invitation only.

www.business-review.ro Business Review | December 12 - 18, 2011

WHO’S NEWS

LINKS 9

Business Review welcomes information for Who’s News from readers. Submissions may be edited for length and clarity. Get in touch at simona.bazavan@business-review.ro

Marcus Störkel will be the new general manager of Nokia Romania as of January 1, 2012. He is replacing Razvan Petrescu, whose three-year term as country manager is ending. Störkel will be responsible for coordinating the company’s local activities and its relations with local partners for Romania and Hungary. He has been with the Finnish company for the past 15 years. In recent years, he has had regional responsibilities in the CEE region, holding the positions of marketing and sales manager respectively in 2009 and becoming country manager for Hungary. Störkel is a graduate of the Giessen University in Germany.

Daiana Voicu has resigned as managing partner of Willbrook International for personal reasons. George Ispas, who until now has served as operations director, will provide interim management until an official appointment is made. Part of Miller Global International, British real estate company Willbrook International has been present in Romania since 1998 and, according to its data, has invested more than EUR 500 million over the years in real estate projects such as Oxford Gardens, Willbrook Platinum, Cathedral Plaza, Green Gate, Zenith, Grace Garden, Rose Garden, North Star, Willbrook International Headquarters in Bucharest, Tomis Mall (Constanta) and Vila Maria (Sinaia).

Dragos Apostol has been promoted to managing associate at Tuca Zbarcea & Asociatii. He rejoined the firm in August after having spent several years at other local law firms. For the past 12 years, he has advised clients from the mining, oil and gas, automotive, agribusiness, food and beverage industries, as well as private equity funds and asset management companies in relation to their investment plans in Romania. As such, he has been involved in complex real estate and concession/public procurement, M&As and privatization projects.

Dominic Morega has been promoted to managing associate at Tuca Zbarcea & Asociatii. He joined the firm in September after having worked for Musat & Asociatii for eight years. With 14 years of experience, he mainly advises top international players in the pharmaceutical industry and healthcare services market on matters of compliance with Romanian/EU legal requirements and on complex M&A transactions,

corporate and commercial law, administrative disputes, and similar. He has also been involved in revising various enactments regulating the pharmaceutical and healthcare areas.

Geanina Tache has been promoted to senior associate at Tuca Zbarcea & Asociatii where she has worked since April 2010. Prior to joining the firm, Tache was an associate at RTPR Allen & Overy for four years. She mainly specializes in civil and commercial disputes, in administrative and public procurement litigation, forced execution procedures and similar. Other areas of practice include real estate and corporate/commercial law.

Alexandru Anghel has been promoted to senior associate at Tuca Zbarcea & Asociatii. He combines 12 years of expertise in providing legal advisory services in corporate/commercial law and real estate with litigation support, having represented clients before the Romanian courts at all levels, including before the High Court of Cassation and Justice, in relation to complex civil and commercial disputes, real estate litigation, contentious-administrative, forced execution procedures, as well as insolvency and liquidation.

Oana Mina has been promoted to senior associate at Tuca Zbarcea & Asociatii. Her main areas of practice are real estate, property and corporate law. For the past five years, she has advised on the various stages of real estate project implementation and development, real estate acquisition/disposal, including drafting and negotiating sale-purchase agreements, joint-venture agreements and other commercial contracts. Mina has also regularly assisted the firm’s clients in relation to commercial lease agreements and property development legal issues.

Alexandre Maymat has been appointed the new president of BRD-Groupe Societe Generale. He is replacing Guy Poupet, who had held the position since 2010 and had a fouryear mandate. Maymat has been administrator and general director of Societe Generale in Cameroon and has been proposed to serve as administrator and president of BRD from 2012. Since 2004, Guy Poupet was vice-president and general director of National Societe Generale Bank Cairo, and served as administrator in insurance and leasing companies. Poupet was also administrator of the French Trade Chamber in Egypt.

www.business-review.ro Business Review | December 12 - 18, 2011

10 DEALS OF THE YEAR

Top Deal of the ye

This year’s list includes deals that have been completed in 2011, i on the transaction at a local or international level. The M&A mark ence from investment funds this year. Oresa Ventures acquired a private equity fund Innova Capital gained an operator on the card snapped up a minority stake in a Romanian hotel chain, while New (NEPI) also sealed deals on the local market. ∫ OVIDIU POSIRCA

Disclosed M&A transactions total USD 262 million Specialists at Ernst & Young Romania report that the M&A market stabilized in 2011 compared to 2010. E&Y counted 98 transactions to date in 2011, compared to 104 in 2010. However, further deals are expected to be struck by the end of 2011, meaning that the market should post similar figures to last year. Of the 98 transactions thus far, 35 alone have a disclosed value that reaches USD 262 million. When comparing the average deal value based on information made public, the average value per transaction fell below USD 10 million, from a 2010 average of USD 28 million, according to the E&Y analysis. “Broadly, the market has maintained a pace similar to the previous year from the point of view of transaction numbers and values, except for a small number of transactions that outpaced the market trend,” said Radu Stoicoviciu, partner and leader of transactions and management consultancy at PwC Romania. He added that the value of deals remained low, continuing last year’s trend, and that the number of transactions with values between EUR 20 million and EUR 40 million has fallen.

Acquisition appetite remains low Stanciu added that the M&A market has not registered significant growth because the gap between the expectations of sellers and buyers hasn’t appreciably narrowed. Most of the transactions involved insolvent and distressed companies. However, the 31 transactions completed by financial investors that have either been announced or closed this year represent a growth trend that should continue in 2012 as well. By comparison, only 10 deals of this kind were done in 2010.

Growth in M&A market for 2012 “The M&A market should see an upward trend in 2012, as long as economic recovery materializes in Romania. At present, there are some rumors of upcoming large

transactions in 2012 including planned privatizations following IMF recommendations. If these deals got done, probably during the second half of next year, the local M&A market would significantly rise,” predicted Stanciu. She added that the most attractive sectors for acquisitions remained services, manufacturing, energy & mining, telecom & media. For 2012, the manager forecast that acquisitions in services, energy, real estate and IT will continue. The PwC partner commented that the agriculture sector has seen significant transactions, between companies that are in the fertilizers and pesticides business, as well as firms that handle the storage and sale of agricultural production. The E&Y representative added, “Strategic decisions such as the acquisition of other companies are highly dependent on the overall economic prospects and their visibility. In these uncertain times (with the Euro-zone debt crisis and economic turmoil), strong prospects for market growth in the respective industry are paramount for an investment decision.” Stoicoviciu forecast that services and FMCG will continue to drive the bulk of demand next year as the conditions will be more favorable, compared to sectors that are connected to durable goods. He added that Romania should see transactions step up in 2012, while companies with limited exposure to risk, from the financial and markets point of view, will be sought after. The volume of deals signed in the first three quarters of 2011 decreased by 7 percent compared to the same period of 2010, according to Allen & Overy research. Activity in CEE was slow throughout the summer break, with several transactions in progress but few closed during the seasonal lull, found the study. Privatization across the region is on its last legs, but Romania seems to have a different situation as thermo plants Turceni and Rovinari, Oltchim, the Romanian Post, CFR and Tarom could go into private hands. State-owned companies in the energy sector may also be subject to IPOs or SPOs in the year to come. The study also found that energy remains an attractive sector, with lots of ac-

www.business-review.ro Business Review | December 12 - 18, 2011

als ear

011, involving law firms that advised market has seen an active presed a manufacturing plant, while card market. Investment fund GED e New Europe Property Investments tivity in the renewable field, something that is the case in Romania where Enel Green Power acquired a 72 MW wind park. Investments of approximately EUR 2 billion in wind farms have also been announced this year by CEZ and Filasa International. EDP Renovaveis received financing for developing two wind farms with an installed capacity of 230 MW. Meanwhile, E.ON, Enel and Termoelectrica teamed up to develop a thermoelectrical independent power producer in Braila. The oil and gas sector also fared well in Romania, as an AUD 12.74 million transaction involved the acquisition of Zeta Petroleum by Key Petroleum, granting the buyer access to important reserves of oil and gas. Speculation that certain energy giants may withdraw from the CEE market hasn't been confirmed yet, but the issue should be kept under consideration, advised Allen & Overy specialists. In CEE, preparatory work is going into nuclear power plants that should be built in the next five years. Locally, Iberdrola decided to exit the Cernavoda nuclear power project, which involved the development of two reactors at a total cost of EUR 4 billion. Allen & Overy forecasts that the volume of deals closed in CEE in 2011 will reach USD 66.2 billion, down from the USD 94.7 billion registered the previous year. Some of the international deals that have been sealed have also impacted local operations. For instance, CA Immo acquired property worth around EUR 1.5 billion, in the Eastern and South Eastern Europe, after taking over Europolis Group. Accounting for 21 percent of the firm’s real estate assets, Romania is its most important market in South Eastern Europe. Another deal, involved the acquisition of AgriPoint Limited, a company that operates the Silotrans grain storage business at the Port of Constanta, in Romania, by CHS Inc. Immofinanz bough out remaining stake in Adama Holding, with one of the largest real estate portfolios in the SEE, which has projects in Romania, Moldova, Turkey, Ukraine and Croatia.

DEALS OF THE YEAR 11

BANKS Erste buys 6 percent stake in BCR from SIF Muntenia Value of transaction: EUR 96 million Legal team buyer: Tuca Zbarcea si Asociatii (Romanian law), Hauser & Partner (Austrian law) Legal team seller: Schoenherr Erste, the majority shareholder of BCR, concluded an agreement to sell/exchange up to a 6 percent share package owned by investment company SIF Muntenia. Austrian Erste Group, the majority shareholder in BCR and SIF Muntenia, entered into a series of agreements including a sale purchase agreement, a swap agreement and an option agreement in relation to SIF Muntenia's holding in BCR.

Erste Bank buys 24.1 percent stake in BCR from four minority shareholders Value of transaction: EUR 500 million Legal team, buyer: Tuca Zbarcea & Asociatii Legal team, seller: Schoenherr (SIF Muntenia); Popovici Nitu & Asociatii (SIF BanatCrisana); not known( SIF Transilvania) In September, Erste Group announced it had reached an agreement in principle with four of the five SIF minority shareholders in Banca Comerciala Romana (BCR) – SIF Banat Crisana, SIF Transilvania, SIF Muntenia and SIF Oltenia (participating SIFs) – under which Erste Group would acquire their 24.1 percent stake or 2,618,286,036 shares in BCR. Since September, Erste Group has signed three final agreements with SIF Muntenia (October), SIF Banat-Crisana (November) and SIF Transilvania (November). A fourth agreement with SIF Oltenia could be reached by end-2011.

INDUSTRIES MedLife buys 55 percent stake in Genesys Medical Clinic Arad Value of transaction: EUR 3 million Legal team, buyer: Not made public Legal team, seller: Not made public MedLife, a provider of private healthcare services, acquired a 55 percent stake in Genesys Medical Clinic in Arad, one of the largest healthcare services providers in western Romania.

Nova Group purchases 27 percent stake in Astra Insurance Value of transaction: EUR 24.9 million Legal team, buyer: Not made public Legal team, seller: Not made public Uniqa Group Austria sold a 27 percent stake in Astra Asigurari to the Nova Group, a company controlled by Dan Adamescu. Prior to the transaction, the Nova Group held a 72 percent participation in the company’s share capital. The transaction was finalized on the Bucharest Stock Exchange (BSE).

Kandia Dulce buys Supreme Chocolat Value of transaction: Not made public Legal team, buyer: Not made public Legal team, seller: Not made public Kandia Dulce, the second biggest player on the Romanian chocolate market, has announced that it will buy competitor

www.business-review.ro Business Review | December 12 - 18, 2011

12 DEALS OF THE YEAR

DEALS in numbers

196 million euros is the total value of disclosed transactions Supreme Chocolat, the third largest player. Kandia Dulce is owned by the Austrian Meinl family, while Supreme Chocolat is a local family business set up by Jihad and Johnny Jabra. The merger will consolidate Kandia’s position on the market and bring it closer to the market leader, Kraft. The transaction is pending approval from the Competition Council.

Fresenius Group acquires Nefromed and Nefromed Dialysis Centers Value of transaction: Not made public Legal team, buyer: Popovici Nitu & Asociatii Legal team, seller: Bostina & Asociatii Fresenius, a global healthcare group providing products and services for dialysis, hospitals and patient home care, acquired Nefromed and Nefromed Dialysis Centers from Euromedic International Grup.

Fresenius Group nets Renamed companies Value of transaction: Not made public Legal team, buyer: Popovici Nitu & Asociatii Seller: private investors Fresenius acquired Renamed Companies, specialized in the hemodialysis field, including Renamed Dialcare, Renamed Medical Service II, Renamed Nefrodial and Renamed Nefrodiamed.

Oresa Ventures acquires business of G&D Teius Value of transaction: EUR 4 million Legal team, buyer: Popovici Nitu & Asociatii Legal team, seller: in-house lawyers Swedish investment company, Oresa Ventures, acquired the business of G&D Teius,

a manufacturer of prefabricated materials through Somaco.

Dynea Oy acquires Rom Re Ro Munteanu

Ameropa Holding buys Azomures and Chimpex

Edenred buys Euroticket

Value of transaction: Not made public Legal team, buyer: Schoenherr Legal team, seller: NNDKP

Value of transaction: Not made public Legal team, buyer: Popovici Nitu & Asociatii Legal team, seller: Miculiti Chiper Shollenbarger Angelo

Value of transaction: EUR 5.5 million Legal team, buyer: Not made public Legal team, seller: Not made public

Dynea Oy, a Finnish leading supplier of adhesive and surfacing solutions, with sales of EUR 527 million in 2009, acquired Rom Re Ro Munteanu, a Romanian company involved in the research and production of paints, adhesives and resins. Dynea has some 40 production plants and 2,100 employees in 22 countries in Europe, South America and Asia Pacific. Rom Re Ro Munteanu was established in 1993 by researcher and inventor Veronica MunteanuPopeneciu.

Edenred, a leading player on the value coupons market, bought Euroticket, the fourth largest issuer of meal and gift coupons, which increased the buyer’s market share to 40 percent.

Innova Capital acquires 96 percent stake in Provus Services Provider Value of transaction: Not made public Legal team, buyer: Badea Clifford Chance Legal team, seller: Reff & Asociatii

Mediterranean Car Agency buys two Autoitalia Group entities

Private equity fund Innova Capital acquired a 96 percent stake in Provus Services Provider and its subsidiaries, fully controlled by RomCard, from Turkven Private Equity and a consortium of Turkish investors. Provus and RomCard are suppliers of card issuing and personalization services and are also involved in operations and transaction processing involving ATMs and POS.

Value of transaction: over EUR 20 million (media sources) Legal team, buyer: Musat & Asociatii Legal team, seller: Not made public Mediterranean Car Agency LTD Israel, a major provider of car dealership services, acquired two entities that are part of Autoitalia Group – Autoitalia Impex, the Romanian importer of the Italian car brands Fiat, Alfa Romeo, Lancia and Maserati, and Japan Motor Brands, the local partner of the Japanese brand Infinity.

3TS Fund invests EUR 4 million in Avangate Value of transaction: EUR 4 million Legal team investors: Not made public

PET Star Holding acquires Korin

3TS Capital Partners, through its technology fund for Central and Eastern Europe SCA SICAR, informally known as 3TS Cisco Growth Fund, has invested in Avangate, a provider of electronic software distribution, by acquiring a minority stake in the company.

Austrian Post buys 26 percent stake in Romanian Post Master Value of transaction: Not made public Legal team, buyer: Schoenherr Legal team, seller: Lawyer Christian Danzer

Value of transaction: approximately EUR 1.7 million Legal team, buyer: NNDKP Legal team, seller: in-house lawyer Pet Star Holding, the largest Romanian company active in the manufacture of PET preforms, has expanded its activities in Romania following the acquisition of a 100 percent shareholding in Korin, a company operating a dormant knitting manufacturing facility.

Opel SouthEast Europe Automotive buys Union Motor Cars Value of transaction: Not made public Legal team, buyer: Kinstellar Legal team, seller: Not made public

Österreichische Post AG acquired a 26 percent stake in Romanian PostMaster, in a transaction that includes the option to acquire the remaining 74 percent stake within two years.

Opel Southeast Europe acquired the Romanian car dealer Union Motor Cars.

Generali Holding Vienna obtains 16 percent stake in Generali Asigurari Romania Value of transaction: EUR 4.8 million Legal team, buyer: White & Case Legal team, seller: Not made public Generali Holding Vienna gained a minority package of approximately 16 percent in Generali Asigurari Romania from the Romanian insurer, Astra Asigurari. Prior to this transaction, Generali Holding Vienna held an 83.7 percent stake in Generali Asigurari.

Regina Maria takes over Promed

Courtesy of Erste

Erste Bank bought a 24.1 percent stake in BCR from four minority shareholders

Value of transaction: Not made public Legal team, buyer: In-house Legal team, seller: bpv Grigorescu Stefanica The Romanian private healthcare operator Regina Maria acquired Promed, expanding its in-vitro fertilization and maternal-fetal medical services.

Ameropa Holding AG, a leading Swiss fertilizer and grain trader, acquired Romanian fertilizer producer Azomures and Chimpex, a harbor operator in Constanta, both listed on the Bucharest Stock Exchange.

Oresa Ventures buys RTC Profﬁce Experience Value of transaction: Not made public Legal team, buyer: Popovici Nitu & Asociatii Legal team, seller: Virjan & Asan Swedish investment company, Oresa Ventures, acquired RTC Proffice Experience, a leading stationery distributor, part of the RTC Group that is controlled by the businessman Octavian Radu.

ENERGY E.ON merges gas and electricity supply subsidiaries in Romania Value of transaction: EUR 200 million Legal team: Kinstellar E.ON Romania merged its electricity and gas supply subsidiaries in Romania. Both the Ministry of Commerce and Electrica disposed of veto rights in relation to the merger. The minority shareholder, the Property Fund, managed by Franklin Templeton, is challenging the merger in court.

Key Petroleum picks up Zeta Petroleum Value of transaction: initial consideration payable is AUD 12.74 million. The deal also includes two additional payments upon operational milestones. Legal team, buyer: bpv Grigorescu Stefanica Legal team, seller: Not made public Australian Key Petroleum Ltd acquired 100 percent of the issued capital and assets of Zeta Petroleum, sole shareholder of Zeta Petroleum Romania. This acquisition provides Key Petroleum with access to estimated reserves of 58 billion cubic feet of gas in Romania and one-four million barrels of oil, as well as to prospective resources of over 300 billion cubic feet of gas.

Regal Petroleum Barlad sells concession to Chevron Value of transaction: USD 25 million (excluding VAT and before taxes) Legal team, buyer: Not made public Legal team, seller: Stefanica & Florea (the firm acted as local counsel for Pinsent Masons, London) Regal Petroleum sold its Barlad concession to US based Chevron. The concession comprises oil and gas reserves located in Barlad.

E.ON, Enel and Termoelectrica constitute BPC-Braila Project Company Value of transaction: EUR 800 million-1 billion Legal team, Termoelectrica: Stefanica & Florea Legal team, Enel: Musat si Asociatii Legal team, E.On: NNDKP E.ON, Enel and Termoelectrica will establish the BPC (Braila Project Company), a

www.business-review.ro Business Review | December 12 - 18, 2011

14 DEALS OF THE YEAR green-brownfield, 1000 MW installed capacity project, for the development and construction of an independent thermo-electrical power producer in the city of Braila.

PARTNER CONTENT

Staying the course

Mineco AG acquires the mining assets/operations of Moldomin

What are the firm's practices that saw the most activity this year? What changes do you expect to see next year? Being widely considered for years Bogdan Stoica as a “transacPartner tional law firm” Popovici Nitu we could say we si Asociatii have stayed the course this year. The Corporate/M&A projects entrusted by clients like Ameropa, Auchan, Autogrill, Cargill, Filasa, Fondul Proprietatea/Franklin Templeton, Fresenius, Arcelor Mittal, Innova Capital, Oresa Ventures reconfirm us as the Number 1 M&A Law Firm in Romania, with our Corporate/Commercial, Capital Markets, Competition & Antitrust and Tax practices essentially supporting our assignments in the M&A field. We have also registered significant activity in the energy field, where we advised investors in more than 30 wind, photovoltaic and hydro energy projects, with a total investment value above EUR 3.5 billion. Litigation and Arbitration was another area that supported our growth, with one arbitration in front of ICSID Washington, four arbitrations in front of ICC Paris and many interesting disputes in front of the Romanian courts. And regarding the Real Estate, although the market saw a clear decline, we have managed again to be involved in the largest number of deals and to assist many developers and retailers.

Value of transaction: Not made public Legal team, buyer: NNDKP Legal team, seller: bpv Grigorescu Stefanica Mineco AG, a company based in Switzerland with businesses in mining and the manufacturing of non ferrous metals throughout CEE, acquired the mining assets/operations of Moldomin, a Romanian company going through bankruptcy, which operates mines with copper reserves of about EUR 1 billion.

Enel Green Power buys Salbatica 2 wind park Value of transaction: over EUR 20 million (media sources) Legal team, buyer: Musat & Asociatii Legal team, seller: Not made public Enel Green Power, part of the Italian group Enel, which develops and manages renewable energy projects, gained a green energy project in the field of wind generation, Salbatica 2, with an installed capacity of 72 MW.

CEZ buys TMK Hydroenergy Power and related assets Value of transaction: EUR 20 million Legal team, buyer: Tuca Zbarcea & Asociatii (Romanian law) and Weil, Gotshal and Manges Prague Legal team, seller: Vernon David CEZ completed the largest transaction in the hydropower sector in 2010/2011, consisting of the acquisition of a 100 percent stake in TMK Hydroenergy Power and related assets (four reservoirs with dams and four small hydropower plants). The deal is also the second largest transaction successfully completed on the M&A market in H1/2011, according to a recent survey by Ernst & Young.

What are the practices that you expect will support the firm's future growth? We do expect to continue capitalizing in the coming years our experience in M&A, Energy and Real Estate where we have ongoing projects for our clients whose implementation will develop over the coming years. Litigation & Arbitration as well as Competition and Tax are also areas of practice we will for sure continuing to focus and develop significantly in the coming years all the more in consideration of the existing environment. Privatization and Public Procurement are areas of practice which will see at least a temporary come back in the next period.

Value of transaction: EUR 1.6 million (media sources) Legal team, buyer: in-house legal counsel Legal team, seller: Tuca Zbarcea & Asociatii OMV Petrom sold Oltchim an air separation unit and logistics infrastructure (railway lines and tank farms), both located on the Arpechim industrial platform. The transaction involved a complex structure of commercial agreements aimed at ensuring the post-closure supply of services and products between the parties. It also involved the transfer of the personnel attached to the assets. The agreement was reached in May 2011.

CEZ develops 600 MW wind park in Romania Value of transaction: EUR 1.1 billion (estimated value of the necessary investments) Legal team: Tuca Zbarcea & Asociatii (Romanian law) and Weil, Gotshal and Manges Prague

ADVERTORIAL

Can you detail the firm's financial results for this year? Without indicating a particular figure – this would be difficult considering that year is not yet finished – I could definitely say that in 2011 we have registered a 10 percent to 15 percent increase in turnover by reference to the previous year, in excess of EUR 10 million. In direct relation with the extension of our operations, we have also enlarged our core team, currently exceeding 85 lawyers and tax advisors while the number of partners rose to 10.

OMV Petrom sells facilities on Arpechim platform to Oltchim

CEZ is investing EUR 1.1 billion in the construction of the largest on-shore wind farm in Europe, with 600 MW of total installed capacity. The first stage of the construction, in Fantanele, will have a total installed capacity of 347.5 MW and involves

the connection of 139 General Electric wind turbines, with a capacity of 2.5 MW each and a height of 100 meters. The wind turbines built in Fantanele over a year and a half were switched on in June 2010 and had produced, by the end of the year, approximately 0.3 TW during the testing period. The second stage of the CEZ Wind Farm, which is built on the territory of Cogealac, Fantanele and Gradina, will have a total installed capacity of 252.5 MW and will comprise 101 wind turbines of the same type (GE 2.5 MW) as those installed in the first stage.

MEDIA Sibmedia Interactive sells majority stake to Schibsted Media Group Value of transaction: Not made public Legal team, buyer: Not made public Legal team, seller: NNDKP (sub-contracted) The founder of Sibmedia Interactive (the owner and operator of tocmai.ro site, leader on the Romanian market of online classified ads) sold a majority participation in the company to Schibsted Media Group.

Romtelecom buys Boom TV from DTH Television Group Value of transaction: EUR 8 million (media sources) Legal team, buyer: Tuca Zbarcea & Asociatii Legal team, seller: Casa de Insolventa Transilvania Romtelecom agreed to acquire the local TV station Boom TV, which is under judicial administration, from DTH Television Group. The transaction involved the assets and customer base of the digital satellite television Boom TV (approximately 95.000 subscribers).

EMI European Media Investment sells its majority shareholding in Trustul de Presa Dunarea de Jos to Mariano Value of transaction: EUR 1.6 million (media sources) Legal team, seller: Tuca Zbarcea & Asociatii Legal team, buyer: N/A EMI European Media Investment, a member of the Swiss Goldbach Media Group, sold its majority shareholding in Trustul de Presa Dunarea de Jos, editor of a leading local newspaper in Galati, to Mariano.

Romtelecom buys Digital Cable Systems’ DTH (Direct to Home) business Value of transaction: Not made public Legal team, buyer: Salans Legal team, seller: Not made public Romtelecom bought Akta Satelit, the DTH (Direct to Home) business of Digital Cable Systems, one of the most dynamic local providers of satellite and cable TV, internet and telephony services.

REAL ESTATE GED buys 30 percent stake in Continental hotel chain Value of transaction: Not made public Legal team, buyer: Vilau & Mitel Legal team, seller: Not made public Investment fund GED acquired 30 percent

M&A MARKET IN ROMANIA IN 2011 3

2 5 17

4 4 8

8 13

10 10

17 Services 14 Manufacturing 13 Real Estate 10 Pharmaceuticals and Healthcare 10 Energy&Mining 8 IT 8 Telecom&Media 5 Other 4 Retail&Wholesale 4 Agriculture 3 Banking and Financial services 2 Publishing and Printing

Source: DealWatch, Zephyr, Mergermarket, press releases

of Romanian hotel chain Continental from risk capital fund PPF Partners. The main shareholder in the chain is the Enache family. The acquisition is the largest investment in GED’s portfolio in Eastern Europe, and joins the fund’s portfolio of tourism investments, alongside Happy Tour, Travel House, Paravion and Prestige Tour.

Auchan acquires platform from Pryconsa Value of transaction: Not made public Legal team, buyer: Popovici Nitu & Asociatii Legal team, seller: Pachiu & Asociatii French hypermarket chain Auchan bought half the land of the former Tricodava industrial platform in Bucharest from Spanish investor Pryconsa, in a “multimillion transaction".

Industrialexport acquires 50 percent stake in Tower International Value of transaction: NOT MADE PUBLIC Legal team, buyer: Popovici Nitu & Asociatii Legal team, seller: In-house lawyers Industrialexport acquired a 50 percent share stake in Tower International, the owner of Bucharest Tower Center, from Central Eastern Real Estate Shareholdings BV.

NEPI buys Floreasca Business Park Value of transaction: EUR 100 million Legal team, buyer: Reff & Asociatii Legal team, seller: NNDKP Ingen Europe BV, sole shareholder of Floreasca Business Park SRL, the company that owns Floreasca Business Park, a class A office building with a GLA of approximately 35,000 sqm, was sold to New Europe Property Investments (NEPI).

www.business-review.ro Business Review | December 12 - 18, 2011

Bluehouse Capital buys Astoria Business Center Value of transaction: over EUR 10 million Legal team, buyer: NNDKP Legal team, seller: Biris Goran Bluehouse Capital, a major equity real estate investment management firm, bought a 4,500-sqm lettable office area, Astoria Business Center in down town Bucharest.

CD Capital Partners and Benovo Capital Corporation sell 50 percent of Vic City Project to NEPI Value of transaction: Not made public Legal team, buyer: Popovici Nitu & Asociatii Legal team, seller: Reff & Asociatii Canadian Investments funds CD Capital Partners & Benovo Capital Corporation sold 50 percent of the Vic City Project to New Europe Property Investments (NEPI), for the development of Victoria City Center, in Bucharest.

Bluehouse Capital buys Praktiker Center Value of transaction: EUR 10 million Legal team, buyer: NNDKP Legal team, seller: in-house lawyers Bluehouse capital, a major equity real estate investment management firm, bought a 9,500-sqm lettable area project, Praktiker Center in Craiova

GED Real Estate Eastern Investments buys real estate property from Heineken Value of transaction: EUR 3.6 million (me-

DEALS OF THE YEAR 15 dia sources) Legal team, buyer: Tuca Zbarcea & Asociatii Legal team, seller: Schoenherr Spanish investment fund, GED Real Estate Eastern Investments, acquired a real estate property (Militari Property Management) from Heineken in a share deal worth EUR 3.6 million. Before the sale, Heineken Romania owned 99 percent of Militari Property Management and the remainder was in the hands of an individual.

AGRICULTURE Cargill buys Provimi Value of transaction: EUR 1.5 billion Legal team, buyer: Baker & McKenzie (lead law firm); Popovici Nitu & Asociatii (Romanian law) Legal team, seller: Freshfields International producer and marketer of food Cargill acquired animal nutrition business Provimi from the European private equity fund Permira. Both of the companies involved in the transaction are present on the Romanian market.

Sumitomo Corporation acquires 90 percent stake in Alcedo

and investors has expanded its operations in Romania following the acquisition of a 90 percent shareholding in the highest performing Romanian producer and distributor of fertilizers and seeds, Alcedo.

DSM Nutritional Products AG acquires Fatrom-Aditivi Furajeri value of transaction: Not made public Legal team, buyer: Wolf Theiss Legal team, seller: Not made public DSM Nutritonial Products AG, a member of DSM Group, acquired the animal premixes business of Fatrom-Aditivi Furajeri. DSM Group will develop the Romanian animal feed sector, given the anticipated growth in animal farming and the rise of industrial feed production.

Agrium acquires Agroport Value of transaction: Not made public Legal team, buyer: Wolf Theiss Legal team, seller: Not made public Agrium Inc. acquired Agroport, the Romanian subsidiary of Cereal Toscana, a fertilizer distributor based in Italy. Agrium acquired a 100 percent equity position in Cereal Toscana and Agroport.

Value of transaction: several tens of millions Euros Legal team, buyer: NNDKP Legal team, seller: Bostina & Asociatii

IT&C

Sumitomo Corporation, one of the largest Asia-Pacific based trade houses

Value of transaction: Not made public Legal team, buyer: Wolf Theiss

Cegedim buys software company

Legal team, seller: Not made public Cegedim, a global technology and services company specializing in the healthcare field, acquired a business delivering software solutions to Romanian pharmacies. The acquisition involved the spin-off of this business from the seller’s parent company.

Bramerton Investments acquires 70 percent stake in Q’Net International Value of transaction: Not made public Legal team, buyer: Popovici Nitu & Asociatii Legal team, seller: Borza & Asociatii Bramerton Investments bought a 70 percent stake in the local supplier of equipment, IT solutions and services Q’Net International.

Imtech NV buys Sapphir IT & Management Value of transaction: Not made public Legal team, buyer: Not made public Legal team, seller: Not made public Imtech, global independent supplier of electrical engineering, IT&C and mechanical engineering services, entered the Romanian market via the acquisition of the company Sapphir IT & Management Consulting GmbH, including its office in Bucharest. The acquisition was made through one of the companies owned by Imtech, ILS ICT Group, which was renamed Imtech ICT Austria at the beginning.

www.business-review.ro Business Review | December 12 - 18, 2011

16 LINKS

Embattled telecom players soldier on Worth EUR 3.6 billion last year, Romania’s telecom market remains dynamic and competitive. While operators’ financial indicators were hit by the crisis, the firms remain solid and fighting battles on various fronts – network coverage, landline and mobile telephony, fixed and mobile data, analog, digital cable and DTH. BR finds out how the market fared this year. ∫ OTILIA HARAGA

Latest financials ROMTELECOM Romtelecom’s revenues dipped 11.8 percent in Q3, 2011, to EUR 160.1 million, while its EBITDA fell 5.6 percent to 36.9 million. Its landline customer base fell to 2.5 million, from 2.6 million at end-September 2010. However, on the data segment the number of subscribers rose 16.8 percent to 1.1 million. TV services clients hiked 20.4 percent to 1.2 million.

Courtesy of Sony Ericsson

Fewer users but more traffic characterizes this year’s telecom market. The number of postpay and prepay mobile contracts fell 3.2 percent in the first six months, reaching 23.6 million on June 30. This brought mobile telephony penetration down nearly 3 percentage points, to 110.2 percent, according to data from telecom regulator ANCOM. “The number of active prepay cards is down 4.5 percent to 14.28 million, while postpay residential customers also declined 2.2 percent to 6.45 million. However, the number of postpay subscriptions signed by companies rose 1.4 percent to 2.86 million,” said ANCOM president Catalin Marinescu. While the number of users declined, voice traffic continued to grow, reaching 28.6 billion minutes, 7.8 percent up on the last six months of 2010. “Of total voice traffic in the first half of this year, 85.7 percent (the equivalent of 24.5 billion minutes) represented traffic within operators’ own networks. Compared to H2 2010, traffic is up 8.8 percent. Traffic to landline telephony networks and international networks has also risen – by 12.5 percent (to 1.1 billion minutes), and 6.9 percent (272 million minutes), respectively. But voice traffic to other networks declined 1.7 percent (2.7 billion minutes),” said Marinescu. ANCOM data indicates that most traffic – 55 percent – came from prepay users. “The average duration of a mobile phone call has extended significantly, regardless of the network where the call was finished. It increased to 2 minutes and 23 seconds compared to the level in H2 2010, 2:12,” said Marinescu. In H1 the average user talked on her mobile for a total of 3 hours and 19 minutes a month, up 9 percent, and sent 36 SMS, a 33.4 percent rise. Mobile phone users sent 5.2 billion SMS during the period, up 31.9 percent on H2, 2010. “This proves that operators managed

COSMOTE Cosmote revenues climbed 2.6 percent in Q3 to EUR 120.6 million, while its EBITDA rose 26.6 percent to EUR 29.5 million. Total customers (including Zapp clients) reached 6.5 million at end-September, of whom 22.8 percent were subscribers. ORANGE Orange Romania posted revenues of EUR 241 million in Q3, 2011, 2 percent down on Q3, 2010. On September 30, Orange had 10.18 million customers, including 4.3 million for mobile broadband.

Mobile operators now have fewer customers but greater traffic to reconfigure their offers and adjust to the new economic climate, which stimulated the growth in traffic, in spite of the decrease in the customer base,” he said. The data suggests the telecom market has reached maturity, as there is fierce competition among six operators Orange, Vodafone, Cosmote, Telemobil (taken over by Cosmote in 2009), Romtelecom and RCS&RDS. To this roster can be added UPC, a serious competitor, especially for Romtelecom and RCS&RDS, on business lines such as data, landline telephony and television. One possible merger between sister companies Romtelecom and Cosmote, both part of OTE, is looming, which would make the new entity the largest telecom conglomerate on the Romanian

market. The state, a minor shareholder in Romtelecom with just under 46 percent, announced that it would sell its stake, but OTE, which holds the rest, said it was not ready to make further investments in this economic context. This left the state with the option of listing its shares on the stock exchange, having just finished the process of selecting a consultant to evaluate the benefits of the proposed merger and listing on the stock exchange compared to other options for the operator. RCS&RDS is also said to have begun discussions about the takeover of UPC, though the reports have not been confirmed by either party.

otilia.haraga@business-review.ro

UPC UPC Romania posted revenues of USD 36 million in Q3, 2011. At end-September, it had over 1.5 million customers, and has a database of 266,400 internet subscribers. Telephony subscribers reached 167,200. The company gained on digital cable, reaching 328,600 clients, and on DTH where it reached 255,500. VODAFONE Vodafone Romania revenues in H1 of the fiscal year until September 30, 2011, were EUR 410.7 million, down 3 percent y-o-y. The customer base fell below 8.6 million from 9.83 million at end-September 2010. The postpayprepay ratio was 40:60. RCS&RDS Last year RCS&RDS posted a turnover of EUR 418 million (Finance Ministry data).

www.business-review.ro Business Review | December 12 - 18, 2011

CITY 17

FILM REVIEW

Route Irish

Courtesy of Independenta Film

Dogs of war: Loach’s powerful film is set in the murky world of private contractors

∫ DEBBIE STOWE Directed by: Ken Loach Starring: Mark Womack, Andrea Lowe, John Bishop On at: Grand Cinema Digiplex Baneasa, Hollywood Multiplex, Studio Ken Loach’s filmography has seen decent-hearted working-class types, among other fates, left homeless, have their children taken away, descend into prostitution/crime/alcoholism/drug addiction, bullied, beaten, have their pets murdered and hang themselves. To this cheery list we may now add: get blown to bits in Iraq. Such is the lot of Frankie (John Bishop), a former soldier turned security contractor. Frankie’s gruesome demise has left his bezzie mate (they’re from Liverpool) and colleague Fergus (Mark Womack) traumatized, mainly because it was at his urging that Frankie decided to sign up for the gig. Although the GBP 10,000 a month probably helped oil the wheels. A mystery mobile phone, smuggled out of Iraq by Frankie before he was killed, leads Fergus to suspect that his friend’s death – on Route Irish, the dangerous road between Bagdad airport and the Green Zone – might not be as straightforward as it seems. He and Frankie’s widow, Rachel (Andrea Lowe), set about investigating the potential cover-up, while at the same time dealing with their grief. The film is set largely in Liverpool, though flashbacks from Iraq (filmed in Jordan) powerfully evoke the daily horror of war, in particular its impact on the ordinary citizens trying to go about their

business in the conflict zone. The political point is manifest: Loach’s outrage at the impunity with which private contractors – often violent ex-squaddies – can take out their bloodlust on the local population while their callous, golf-playing corporate superiors pocket the profits of the reconstruction deals. Alongside its moral message, Route Irish unfolds as a conspiracy theory tale, in which – needless to say; after all, it is Loach – the baddie is the movie’s only posh person. Though at the beginning the director seems to be dividing his characters rather too neatly into good and bad, as events progress and move the film towards the revenge genre, the ethical picture gets less black and white. There are some very sincere performances, largely from unknown or non-professional actors, and Loach, as ever, makes some important social points. But something stops Route Irish from being entirely successful and earning a place among the director’s seminal works. Towards the end the plot loses some of the plausibility and realism for which Loach is noted, and flirts with melodrama. While elements of the narrative should tick the thriller box, they sometimes fall short, and there is an occasional unpolished quality that makes the production feel more like a TV drama than a movie. But despite this, Route Irish in an intelligent film – like all of Loach’s output it is earnest, serious and with heart – with shades of The Constant Gardener and Syriana, albeit not with their scale. The moral murkiness of the denouement and Loach’s refusal to tie things up neatly befit the world of war and profiteering the film examines. ∫

www.business-review.ro Business Review | December 12 - 18, 2011

18 CHRISTMAS GUIDE

Courtesy of Baneasa Photo: Laurentiu Obae

All you want for Christmas Choosing the right gifts for your loved ones can make the season of goodwill a stressful time. Why not let BR help? Over the following pages you will find our selection of the best places to do your Christmas shopping, from all-encompassing malls and local designer fashion outlets, through to traditional Christmas fairs, upmarket delicatessens and English-language book shops. And when you’re done, don your skates and take to the ice at one of Bucharest’s open-air rinks. We’ve even got your pets covered! ∫ STAFF

SHOPPING Baneasa Shopping City North Bucharest is home to the ﬁrst greenﬁeld mall development in Bucharest, with special attention paid to the architecture and the landscape. Baneasa Shopping City offers a unique blend of shopping through more than 200 stores and refreshments units, with areas devoted to entertainment and leisure. The Grand Cinema Digiplex – the largest in Romania, with 13 large screens suitable for 3D projection, perfect angles of vision and an ultra-comfortable 2,600 seats – is one of the city’s newest attractions, offering a wide range of cinematic experiences under one roof. The mall’s Seasonal Offer Extravaganza is coming up this weekend, Dec 16-18, and will run until midnight. Get your gift voucher from the information desk. Holders of a Baneasa Bonus Card will get two more months’

grace period for shopping bought before Jan 8. Off DN1. www.baneasashoppingcity.ro.

Belstaff For those in love with the avant-garde style of Belstaff leather jackets or highly innovative waterproof materials, or perhaps the brand’s association with the Hollywood celebrities who have transformed some of its pieces into universal icons, both men and women can ﬁnd the latest collections of Belstaff apparel and accessories in this downtown Bucharest mono-brand store. Calea Victoriei 136. 10.00-20.00.

Cocor Store The store is unique for the Romanian fashion designers’ gallery on its second ﬂoor, which currently brings together more than 30 local designers offering a variety of clothes and accessories at affordable prices and the possibility of bespoke products. Brands include: Doina Levintza, Liza Panait, Catalin Botezatu,

Mihai Albu, Anca & Silvia Negulescu, Elena Perseil, Adelina Ivan, Agnes Toma, Cristian Samﬁra and Cristina Nichita, B-dul I.C. Bratianu 29-33. www.cocor.ro.

Dada The epitome of a concept store. While enjoying a lunch of fusion food in the unmistakable Dada style, you can peruse or buy a Dada dress or bag at production prices. Why? Because the building’s upper ﬂoor hosts the Dada factory itself. Downtown, Dada products and other fancy labels like the local Edita Lupea and Ioana Covalcic can be found in the little shop at Piata Amzei. Matei Voievod 94bis (restaurant/showroom), Tache Ionescu 1 (shop). www.dada.ro.

Elysee Maison Des Parfums Located in an elegant, Ludovic style villa in Piata Lahovari, the store displays a collection of perfumes and cosmetics in three distinctive salons. A complex

experience, from Menard , the most exclusive Japanese cosmetics house to surprising new fragrances you can also access aesthetic consultancy and tailored fragrance creation services. Strada Tache Ionescu 29. www.elyseeconcept.ro.

Idelier On a Piata Romana corner, a Workshop of Ideas coordinated and inspired by the designer Silvia Serban occupies the ground ﬂoor of an interwar building. Before continuing to the rooms of the concept store, why not linger in the new café-bar, recline at one of the “must-see” chairs and tables over trendy cocktails or recreate the Manhattan vibe with morning coffee. Besides clothes, shoes and bags, which run from vintage to avant-garde style, the place is also popular for the young and fancy yet traditional jewelry designers such as Maria Filipescu, Roxana Davidescu and Mihaela Tarhuna. Lascar Catargiu 1. www.idelier.com.

www.business-review.ro Business Review | December 12 - 18, 2011

20 CHRISTMAS GUIDE Iqonique Class Studio

Calea Victoriei 83-85 (Downtown boutique), Baneasa Shopping City, ground ﬂoor. www.adinabuzatu.ro.

With a focus on classic, high-quality design, airy and minimal, but unselfconsciously warm and friendly, this discreet, elegant villa in the Aviatorilor area is a space where the passion for aesthetics and rules of style prevail. Choose from unique objects of interior design, gifts for the home, fashion and beauty, wine and gourmet foods and, last but not least, a selection of books and magazines dedicated to relaxation and lounge moments. The showroom presents some brands for the ﬁrst time in Romania, such as Fornassetti, Ingo Maurer, Palucco, Edra, Jars Ceramics, Lara Bohinc, Uncommon Matters and Hermes Vintage. Aleea Alexandru 7. Mon-Sat, 10.00-20.00. www.iqonique-cs.ro.

Venera Arapu

Courtesy of Venera Arapu

A mono-brand store with a distinctive signature on the interior design, fashion designer Venera Arapu brings a range of clothing from evening gowns to shirts and coats, all dedicated to strong and nonconformist women, yet endowed with reﬁnement and elegance. A special surprise comes from the Vitrina pieces created and manufactured under the designer’s direct supervision by students of the Bucharest Fashion Design Faculty. Banu Antonache 59.

Kristina Dragomir Hats

Madame Briolette

Musette A classic feminine look and comfort, designed by an Italian team, is what characterizes the Romanian-based footwear brand Musette. Bags, clutches and belts, deﬁned by color and style, are also produced under the same name. Cristhelen B is Musette’s premium brand for woman, an exclusive line produced in limited editions. For men, the Giannini line of shoes and accessories are made to the same high standards of quality and affordable prices. Calea Victoriei 114, Baneasa Shopping City, Bucuresti-Ploiesti 26, Bucuresti Mall, Calea Vitan 55-59, Unirea Shopping

Center, Piata Unirii 1, Cotroceni Park, Bd. Vasile Milea 4. ofﬁce@musettegroup.ro.

Nissa A one hundred percent Romanian apparel brand for women with a modern-classical style in keeping with the latest international trends, but a very good price/quality ratio. There is a network of shops, most of them in malls, but also a ﬂagship store close to Piata Romana (Bdul Dacia 39, Mon-Sat 9.00-20.00, Sun 10.00-18.00). Unirea Shopping Center, AFI Palace Cotroceni, Cora Pantelimon, Centrul Comercial Feeria-Baneasa, Centrul Comercial Orhideea.

Pierrot Interior and garden decorations, gift ideas and Christmas decorations all under one roof. This store stocks beautiful objects, carefully put together and inspired by various traditions. They bear the names of famous interior design companies from Italy and Germany such as Wald, Shan, Hoff Interieur and Drescher, found exclusively at Pierrot. The product range is wide, from items such as porcelain from the exclusive Villar collection, inspired by the Italian baroque, to affordable products, both contemporary and traditional. The store is a rich source of gift ideas from scented candles and Swarovski crystals, to traditional Christmas decorations. Intr. Biserica Alba 1.

Sepala The footwear brand Sepala, Mihaela Glavan’s high-end line, embraces minimalism. Shoes are simple, with well-deﬁned cuts and cutouts. The must-have of the A/W collection are the over-the-knee boots and high platform shoes going for a sexy look in parallel with the low biker-inspired

boots. Sepala Kids and RSM for men make the shopping experience one for the family. Benjamin Franklin 9, (Atheneum area). Mon-Fri 10.00-22.00, Sat 10.00-17.00.

The Place Concept Store The ﬁrst fashion concept store in Romania is a versatile space mixing luxury and avant-garde fashion collections with the hottest music labels, modern art exhibitions, high-tech gadgets and chic events. The ontrend labels found here include Azzedine Alaia, Oscar de la Renta, Rick Owns, Gareth Pugh, Jil Sanders, Alexander Wang and Sonia Rykiel. Calea Dorobantilor 102-110. Mon-Fri 10.0020.00, Sat 10.00-18.00.

Trend’s by Adina Buzatu

Arte & Vino While its Romanian-language-only website makes Art & Vino a little less foreigner friendly, this is another business run by proper wine people. The bottles stocked come from Romania, Eastern Europe, the traditional wine-making nations of Western Europe and the New World. B-dul Marasesti 2 (Carol Parc Residence). www.artevino.ro. Mon-Sun 09.00-19.00.

Bacania La Tache It simply wouldn’t be Christmas without the traditional dishes. If you are keen to sample a taste of local products such as Plescoi sausages, smoked cheeses or hearth bread, then Bacania La Tache is a good place to go shopping. If the schedule doesn’t suit you, there is also the option of ordering online, but it would be a shame to miss out on the experience of indulging in the mouthwatering ﬂavors in the store. Nicolae G. Caranﬁl 48. www.bacanialatache.ro. Mon-Fri 09.00-15.00, Sat 09.0018.00, Sun 09.00-14.00.

Bacania Veche

Courtesy of Adina Buzatu

A window full of heads wearing hats, berets and caps on Magheru Boulevard heralds a store with modest interior design, but this means little given the shelves of hats waiting to be tested. Besides fur hats made in Poland or Ukraine, the multitude of felt options and classical models in many colors are created in Romania. Hand-knitted hats and shawls from Hunedoara villages and plenty of colorful leather gloves are among the many other accessories. And all at very affordable prices. Briolette du Cinema, Magheru 29, corner with Biserica Amzei; Briolette Boutique, Ion Campineanu 12.

Photo: Laurentiu Obae

Courtesy of Kristina Dragomir Studio

Artistic hats are executed on frames made by the renowned UK Royal House specialists, with the ﬁnest and most exotic materials purchased in London, where the designer actually learned her craft: this is a fantasy world where women have no limits. A meeting for a unique hat made by Kristina Dragomir and a chance to hear her styling advice is available by appointment only from 18.30-21.00, Monday to Friday. Mihail Kogalniceanu 51, 2nd ﬂoor, access code 11.

Sepala – local designer Mihaela Glavan’s high-end shoes

FOOD & DRINK

A touch of refinement and an interwar atmosphere grace the first boutique covering mainly men’s apparel. Shoes from Ortigni, Magnanni and Bensimon, Albert Thurston braces, Borsalino hats, an impressive collection of cufflinks and ties are all on offer. From the classic casual and elegant designs of Messagerie to the progressive Babette Wasserman, the pieces are versatile and easy to match. But if you are not sure, do not hesitate to ask the owner, who is always pleased to help style you.

Bacania Veche is a grocery store which, its owner says, aims to offer food with a story. The shop sells traditional Romanian meat, dairy products, wines, all sorts of preserves, in-season fruit and vegetables, unconventional kitchen implements, baked goods, as well as international products – all under the motto “no preservatives, no colorings or other chemical additives”. Strada Barbu Vacarescu 49. www.bacaniaveche.ro. Tues-Sun 09.00-20.00, Wed 09.00-23.00.

Crama Murfatlar Crama Murfatlar (Murfatlar Winery) stores can be found in almost all the neighborhoods in Bucharest as well as in a large number of shopping centers. You can choose from all the producer’s varieties and, if you’re not sure what to pick, tasting is free and the vendors are there to offer advice. 35 stores in Bucharest. About 09.0020.00, varies depending on location.

www.business-review.ro Business Review | December 12 - 18, 2011

Boutique Comtesse du Barry Ateneu Upmarket delicatessen that brings a little French gastronomic savoir faire to Bucharest. All manner of edible and drinkable treats await, including smoked salmon, caviar and posh chocolates, not to mention a range of wines. If you have foodie friends and money to spend, you could do all your Christmas shopping here. Another outlet can be found in Baneasa Shopping City. Strada Episcopiei 2-4. www.lemanoir.ro. Mon-Fri 10:30-20.00, Sat & Sun 10.3017.00.

Delicateria Traiteur Serving up gastronomic goodies from a delectable range of chocolates to sauces, condiments and oils, not forgetting soft and harder drinks, plus accessories such as coffee makers. For those aiming to be more virtuous over the traditional season of indulgence, there is also a selection of organic products. Orders are taken online with delivery promised between 24 and 48 hours. Strada Putul lui Zamﬁr 22-24. www.delicateria.com. Mon-Sat 09.00-21.00, Sun 09.30-16.00.

Ethic Wine With an ethos of bringing quality wines to local consumers at sensible prices, Ethic has some bargain bottles (it also sells spirits and olive oil). The owners boast of having “the largest selection of Romanian wines in Bucharest”, but the rest of Europe and the New World are also covered. Banu Antonache 55, Piata Floreasca. www.ethicwine.ro. Mon 15.00-21.00, TuesFri 13.00- 21.00, Sat 10.00-16.00.

Lizar Tobacco & Liquor Store Wines, liquors, cigars, cigarettes, pipe or narghile tobacco and other accessories are good options to consider as a gift for a gentleman if you have run out of ideas. And for Zippo collectors, the stores sells the entire range of the famous American wind-proof lighters. Pipera Tunari Road 34 and Radu Beller 3-5, www.lizar.ro.

Targul Domnesc If you ﬁnd yourself strolling through Kiseleff Park than a stop at the nearby Targul Domnesc grocery is worth your while. The store offers a large variety of organic foods from producers such as Rapunzel and Probios, as well as traditional Romanian products. And if you’re worried about all the candy the kids

CHRISTMAS GUIDE 21 are going to eat this Christmas, you can pick some organic sweets for them. Strada Arh. Ion Mincu 5. www.targuldomnesc.ro, daily, 09.00-21.00.

Van Gogh wine shop The Netherlands might not be the main country you’d associate with ﬁne wines, but the people behind Van Gogh café know their onions when it comes to quality food and drink. The expat hangout du jour sells a selection of bottles, which can be tasted on site along with some cheese, or delivered to your home. Strada Smardan 9. www.vangogh.ro. Mon-Fri 17.00-24.00, Sat & Sun 12.0024.00.

Vinexpert Started by a group of oenophiles, the Vinexpert network stocks a range of top European wines and spirits, along with other high-end goods such as teas, coffees, chocolates and Cuban cigars. If you’re stuck for inspiration, the website has a list of Christmas gift ideas. It also has mall outlets. Octavian Goga 24. www.evinoteca. eu. Mon-Fri 09.30-21.00, Sat 10.0019.00.

Wine & Company Classily decorated wine outlet whose bright lights tempt Lipscani revelers as they make their way home. No online ordering system seems yet to be up and running, but the convenient Old City location makes it ideal for a post-drinks pop-in. The company also has a mall presence. Strada Lipscani 28.

The Winery Outlet If you’re unsure what tipple to give someone this Christmas, The Winery, part of the British company Halewood, is doing RON 50 and RON 100 gift vouchers. There are also special deals on bubbly – ideal with the party season coming up – and other products. You can order online, and there’s free delivery for orders worth over RON 450. The store stocks the entire range of wines produced by Romanian Halewood and another 179 imported wines – from Uruguayan Pisano and South African Simonsig to famous French producers like Hugel & Fils, Lupé Cholet and Gerard Bertrand. In addition to wines, the store also offers beer and liquors – for some Christmas ﬂavor, you can choose ginger beer or cider.

Photo: Laurentiu Obae

Bacania Veche – traditional food with a story

22 CHRISTMAS GUIDE

www.business-review.ro Business Review | December 12 - 18, 2011

Animal attraction – a pet hotel

PET HOTELS Pluto Pet Hotel Photo: Laurentiu Obae

The Sala Dalles Christmas fair – located in the very heart of Bucharest

BOOKSTORES Anthony Frost Tucked away opposite the Kretzulescu Church, this little place has now been impressing local bookworms for four years. Open until 20.00 on weekdays and with a central location, Anthony Frost is a good spot to pick up gifts for friends and family after work in one fell swoop, as its extensive stock runs the gamut from children’s stories to the latest literary sensations. Calea Victoriei 45. www.facebook.com/anthonyfrost.ro.

Carturesti

an outlet. Diverta close its high street branches and now operates from malls. www.diverta.net.

Nautilus Another long-termer, Nautilus heaves from floor to ceiling with shelves that are bursting with books. Again, all major genres are covered, with its fantasy and sci-fi section particularly chock-full. Orders for out-of-stock titles can be made online. Games and other gifts (tarot cards, anyone?) are also on sale. Strada Arhitect Ion Mincu 17. www.nautilus.ro.

The book concept store of the capital, the multi-functional location – also a teahouse and a coffee shop – has the largest book, music and film ranges on the market. Currently it is also hosting a high-end gifts fair. Arthur Verona 13-15, Mon-Sat 10:00 22:00, special Christmas program: Dec 17, 21, 22, 23 from 10:00-23:00, Dec 24 from 10:00-20:00 .

Noi Bookstore - Dalles

Diverta

CHRISTMAS FAIRS

Its corporate identity means that Diverta is somewhat lacking in the cosy charm of some of its independent competitors, but it’s a good place to stock up on stationery and also has a good range of music on sale. If your Christmas gift idea is surprising a loved one with concert tickets, most major gigs have the store as

ISSN No. 1453 - 729X

It may have been eclipsed by younger and trendier rivals, but the grande dame of the Bucharest book scene offers an extensive selection – its site boasts that the shop stocks over 12,000 titles – with a good local interest section. The size of the place also means there is space to sit down and peruse the wares. Balcescu 18. www.carti-anticariat.ro.

form of a small shopping gallery where visitors can find all manner of gifts for loved ones: clothes, toys, jewelry, sweets, organic cosmetic products, Christmas decorations and candles, plus food and beverages, all beautifully wrapped. A cup or similar item engraved with a message can be a personalized present for someone special. Sala Dalles, B-dul Balcescu 18, Dec 2-24, Mon-Sat 10:00 - 20:00.

Romanian Peasant’s Museum The Peasant’s Museum regularly hosts a traditional Christmas fair with a local twist: craftsmen from all over the country, from regions such as Transylvania, Maramures, Oltenia Moldova, Bucovina and Dobrogea, come to sell the best of their region’s traditions. If you wish to sample old-school Romanian foods, such as cozonaci, sarmale and pork sausages, this is the place to go. B-dul Kiseleff 3. www.muzeultaranuluiroman.ro, Dec 16-18, 10:00-18:00.

The first pet hotel in Bucharest lodges cats and dogs alike in individual rooms with furniture, television sets and underfloor heating. The rooms, which are video monitored, are decorated with objects that are familiar to the pets, who enjoy daily outdoor walks and a regular meal schedule. The hotel has 16 rooms, of which two are reserved for VIPs (Very Important Pets). One night at the hotel costs between RON 45 and 120. Strada Barbu Vacarescu 162-164. www.planetahamham.ro.

SKATING RINKS Cismigiu Skating Rink The small lake in Cismigiu, the oldest public garden in Bucharest, which in summer hosts rowing boats, has been drained and turned into a skating rink of approximately 3,000 sqm, one of the largest open-air ice rinks in Europe. Tariffs are RON 10 during the week and RON 15 at the weekends, and skates can be hired at the site.

Herastrau BTT skating rink The Herastrau BTT artificial skating rink, which measures 1,300 sqm, has been welcoming winter sports lovers since the beginning of this month. Both veteran skaters and novices can take to the ice every day of the week. From Monday to Thursday, rink entry costs RON 10, rising to RON 15 from Friday evening to Sunday. Skate rental is also available. Herastrau Park (near the tennis courts).

Unirii Park

Ice Park Piata Unirii

The traditional fair at Sala Dalles will be open until Christmas Eve. It takes the

Every year at this time, a series of small wooden huts can be found in the park at Piata Unirii, to the delight of children who can choose from a range of sweets. The fair is mostly about food, rather than clothes or artifacts, so for those with a sweet tooth and foodies, it can prove to be a very useful stop. Piata Unirii.

Located in Unirii Square, right in the heart of the capital, the approximately 1,000-sqm Ice Park is part of a winter ensemble that also includes wooden huts selling all kinds of goodies, a bar area, a stage for shows and events, music and lights. Tariffs are from RON 10-15, and skates are available to rent.

FOUNDING EDITOR Bill Avery EDITOR-IN-CHIEF Simona Fodor SENIOR JOURNALIST Otilia Haraga JOURNALISTS Simona Bazavan, Ovidiu Posirca COPY EDITOR Debbie Stowe COLLABORATORS Anda Sebesi, Michael Barclay ART DIRECTOR Alexandru Oriean PHOTOGRAPHER Laurentiu Obae LAYOUT Beatrice Gheorghiu

PUBLISHER Anca Ionita EXECUTIVE DIRECTOR George Moise SALES & EVENTS DIRECTOR Oana Molodoi MARKETING MANAGER Ana-Maria Stanca SALES & EVENTS Ana-Maria Nedelcu RESEARCH & SUBSCRIPTION Lili Voineag PRODUCTION Dan Mitroi DISTRIBUTION Eugen Musat

ADDRESS No. 10 Italiana St., 2nd floor, ap. 3 Bucharest, Romania LANDLINE Editorial: 031.040.09.32 Office: 031.040.09.31 Fax: 031.040.09.34 EMAILS Editorial: editorial@business-review.ro Sales: sales@business-review.ro Events: events@business-review.ro

Sala Dalles