OMV increased its shares at 18.6% of MOL and seeks merger

Austrian group OMV announced on Monday the purchase of 8.6% of Hungarian company MOL for 1 billion euro, Forbes reports. Thus, OMV retains 18.6% of the company now, as compared to its previous 10% participation.

According to Reuters, who quotes a reliable source, the Austrian group intends to take over the Hungarian company and seeks to initiate talks in this regard.

As the source suggests, OMV wants to convince the Hungarian company management to accept a merger of the two companies to better compete with their Russian rivals.

The Austrian group announced that the operations between the two companies supplement each other regionally in Central Europe and an alliance between the two could help both companies compete globally against the biggest oil companies, an OMV press release informs.

Even though, now, OMV retains almost 20% of MOL, its voting power is still stuck at 10% according to internal regulations. However, OMV tries to settle negotiations on an amiable way.

HotNews.ro, Jun 25, 2007