“I don’t want to venture in estimating the crisis’ extent, but I am sure that – as there were many in denial in H2 2007, and did not want to consider the possibility of a major correction of the markets – many investors will be more moderate in investments, long time after the crisis is history”, Ciprian Paltineanu stated for Wall-Street, former VP at London-based investment bank, Credit Suisse First Boston.
He considers that shrinking global liquidity together with general sentiment of mistrust in different forms of investments lead to a high prudence in approaching investment to the restriction of access to alternative funding sources, to writedowns and reduction of target companies’ values.
International crisis is a reality that we all acknowledge or will acknowledge. It is not the case to deny this” said Paltineanu, stressing that these are his points of view and do not reflect the opinion of the company he runs, subsidiary of UniCredit Markets & Investment Banking, corporate finance and investment banking division of financial group UniCredit.
Ciprian Paltineanu aged 33 and he came from London where he served Lehman Brothers local division. Before Lehman Brothers he was investment manager at Burkenroad in New Orleans (USA), after graduating Master of Business Administration courses at Tulane University.
According to Ciprian Paltineanu, in these times of crisis, price expectations of general contractors fall, after coming across with situation when prices solicited by local entrepreneurs did not have a clear background, being more an emotional approach of the alienation process of own business, most of the times a family business to which the entrepreneur was inwardly bound. “A reason for takeover talks deadlock was the gap between investors’ evaluation and entrepreneurs’ evaluation”, Paltineanu added.
However, any crisis brings many investment opportunities, quoting an axiom: “Anybody can make money in a bull market”. “Only that is the need of another type of investor to profit of a bear market, and I don’t mean short selling. There is a number of investors rising in times of crisis when they use liquidities laid aside, for rainy days to buy distressed assets” Ciprian Paltineanu stated.
“As for issuers at the stock market in Romania and in the region, we can see a series of companies whose value of the net book value is significantly higher that the stock market capitalization, usually being a signal of purchase for any value investor”, head of UniCredit CA IB Romania added.
Therefore, the lender expects a series of exits operated by local entrepreneurs combined with a broader aperture of local companies to close strategic partnerships with large international players, both strategically and financially. “The low level of stock markets in the region would allow more and more public-to-private transactions of majority stakes and listing closures of several issuers,” Paltineanu concluded.
Translated by Camelia Oancea
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