ANALYST VIEW - ING downgrades Hungary's MOL, expects no takeover try by Surgut
posted on
Apr 20, 2009 08:20AM
ANALYST VIEW - ING downgrades Hungary's MOL, expects no takeover try by Surgut
http://www.portfolio.hu/en/cikkek.td...
Monday, April 20, 2009 08:49:00 AM
ING has downgraded Hungarian oil and gas group MOL to ‘Sell' from ‘Hold', saying the acquisition of a 21.2% stake in MOL by Russia's Surgutneftegaz was negative for the company. ING does not believe Surgut will buy more MOL shares, but it is concerned that the hostile relationship could increase corporate government and operational risks at the company.
ING has left its target price on the stock unchanged at HUF 9,600.
OMV sold its 21.2% stake in MOL to Russia's Surgutneftegaz in late March for EUR 1.4 billion. The Russian company lacks transparency, and has not previously had a significant business relationship with MOL. It has not not yet announced any of its plans with the stake, either.
“We do not expect Surgutneftegaz to buy any more MOL shares because even if it owns a larger stake it will be unable to increase its influence," Tamás Pletser of ING said.
MOL regards Surgutneftegaz as an unwanted shareholder, and is strengthening its defences to protect the company from a hostile bid, he noted.
