"Austrian oil and gas group OMV does not plan to sell its stake in its Hungarian peer MOL, Reuters cited OMV CEO Wolfgang Ruttenstorfer as telling Austrian state radio ORF on Wednesday.OMV's MOL package (nearly 19%) would help ensure nobody else could take over MOL therefore OMV would not part with it despite MOL's opposition to OMV's proposal of a friendly merger, Ruttenstorfer said.
He added that he still saw benefits in a merger of the two companies.
He reiterated his previous views that competition in Central and Eastern Europe for oil and gas companies would continue to get fiercer, and that “it would therefore be prudent if the strongest central European partners join forces."
"We believe that our MOL stake is money well invested and at any rate that it helps avoid anybody else will go into the company," he said. "That keeps all options open."
OMV had approached MOL with a merger proposal in June after quietly boosting its stake in the Hungarian company, with a market capitalization of about USD 15 bn, to 18.6% from 8.6%. OMV said it was a friendly proposal but the company and the Hungarian government deemed it a hostile takeover maneuver.
In a bid to mount hurdles for OMV, MOL struck a deal with Czech utility CEZ, which is set to take a 10% stake in MOL as part of a wider co-operation deal.
"Currently we feel opposition (from MOL) but who knows what the next two to three years will bring," Reuters cited Ruttenstorfer as saying.
He reiterated that they were not in a hurry at all.
Ruttenstorfer said he would try and talk with politicians and shareholders as well as with MOL's management to convince all parties involved."
Source:
Portfolio Online Financial Journal
13.09.2007