Surgut not hostile, only not friendly - Hungary MOL chief

http://www.portfolio.hu/en/cikkek.td...

Thursday, April 23, 2009 03:57:00 PM

Hungarian oil and gas group MOL has held its annual general meeting in Budapest on Thursday, where shareholders approved the Board's every proposal with overwhelming majority. The amendments to the Articles of Association make it virtually impossible for anyone, including Russia's Surgutneftegas that recently acquired a 21.2% stake in MOL, to take the company over.

2009.04.23 14:33
Hungary MOL AGM supports every proposal, Csányi remains on Board

At a press conference after the AGM, Chairman-CEO Zsolt Hernádi said he has no knowledge that the state would contemplate selling its “B" series MOL stake. This holding, he noted, has become one of Hungary's most valuable shares by the decision of the AGM today.

Surgut bought a 21.2% stake in MOL from Austria's OMV earlier this month, but the Hungarian Energy Office (MEH) did not register its shareholding, saying that while it received a note of the deal by Surgut, the Russian company failed to answer some of MEH's questions.

Surgut's managing director Vladimir Bogdanov released a public letter to MOL's shareholders, confirming the company's “ongoing willingness to establish a dialogue" with MOL"s in its pursuit of a “mutually beneficial partnership."

2009.04.22 23:59
Letter to MOL shareholders

Previously both MOL and the government frowned upon the deal, saying that Hungary and Russia traditionally consult prior to transactions of this magnitude, especially when the object of acquisition is a company of strategic importance.

Hernádi told the press conference he only received an informal invitation to meet with Bogdanov.

He said an unknown caller contacted Hernádi's office saying “Mr. Bogdanov would appreciate if you could visit him in his hotel". When the caller was asked to identify himself, he simply hung up, Hernádi said. This episode took place when Surgut's chief was in Budapest. The meeting, of course, never happened.

Hernádi emphasised that Surgut's action is not hostile - only not friendly, given the unsolicited purchase. He labelled OMV's buying into and opting out of MOL as a game.

Hernádi said MOL has no intention to increase its production capacities in Russia for the time being, hence he sees no potential for strategic co-operation with Surgut, which remains a financial investor for MOL.

As Surgut is a financial investor MOL treats it like any other financial investor and so there is no room for a strategic co-operation, he said.

Nevertheless, Hernádi would be willing to sit down to talk with Bogdanov. He has already met once with the chief of Russia's fourth-largest oil company.

2009.04.23 11:36
Surgut plans no hostile takeover of Hungary´s MOL - EcoMin