"Hungarian Minister of Economic Affairs, János Kóka, has on Friday told NBC that the state will defend its strategic interests against hostile takeovers. His remark comes after Austrian fuels group OMV increased its stake in its local peer, MOL, and offered “friendly talks" on tying links tighter.Kóka also said the junior governing coalition party, the Free Democrats (SZDSZ) have reached an agreement with the Socialist Party (MSZP) on key reform steps.
“As far as takeover attempts are concerned, Hungary will defend its strategic assets against hostile takeovers. We do not have the details yet, but we are in discussion with Austrian politicians to make them fully understand that Hungary does not welcome such hostile attempts on behalf of any state," Kóka told NBC.
NBC's reporter said it was a bit incomprehensible why Hungary is using such an aggressive language over OMV's increase of its stake in MOL, since the Austrian fuels group is investing in Hungary offering to grow the business.
PM Gyurcsány said earlier this week that “We will use any means necessary to thwart this", namely a takeover of MOL by OMV.
2007.06.27 14:48
Hungary PM deems OMV move on MOL hostile, vows to block buyout
“MOL is a strategic company for Hungary. They have the pipelines and all the resources by which we can supply Hungarian households. We don't have problem with any co-operation attempt and everyone who's making investments into Hungary is welcome," the minister said.
“But the way they (OMV) are doing this should be in line with the strategic interest of these kinds of Hungarian companies. These interests must be reconciliated with the Hungarian managements and shareholders. This must not be about sharing the Hungarian market amongst other states' market," he added.
To a question how close his party, the liberal Free Democrats are to strike deal with its senior ally on crucial reform issues, Kóka replied: “The liberals are pushing very much the reforms, because [...] this is the only way to make Hungary competitive for a long term."
He said his party was discussing with the MSZP how to change the “very obsolete" structure of health care “in order to introduce competition for the sake of the patients."
“And we have found a solution and we are one day from signing the agreement with them. On Sunday we will have the full agreement with the Socialists in my hope," Kóka added."
Source:
Portfolio Online Financial Journal
02.07.2007