"MOL" rejected fusion with company "OMV"

Hungarian oil-gas concern "MOL" rejected fusion with Austrian rival "OMV" last night (June 26, 2007). The latter yesterday increased its share in Hungarian company from 10% to 18.6% and offered fusion, that is, friendly takeover to "MOL".

It is said in the announcement of Hungarian concern that this "OMV's" increase in share was realized without consent of company "MOL".

- "MOL" expresses dissatisfaction with the fact that its rival sees the stocks of our company as an attractive investment opportunity, but it must be clearly stated that "MOL" will continue to follow its own strategy - it is written in the announcement.

"OMV" gave 1 billion EUR to increase its share in "MOL". According to unofficial information, the stocks were bought from the richest Hungarian, Medget Rahimkulov. At the same time, in scope of plans for consolidation on European market, Hungarian rival was offered a fusion.

Their merger would lead to creation of the strongest player in central Europe with market value of about 36 billion USD.

In order to increase its share to more than 50% and to take control over Hungarian company, "OMV" would have to pay additional 5 billion EUR.