A merger of OMV and MOL is currently not on the table, Wolfgang Ruttentstorfer, Chief Executive Officer of the Austrian oil and gas group has told Portfolio.hu on Monday. He said partnership with the Hungarian fuels group would be positive, but declined to elaborate on specific plans. 2007.06.25 08:26
OMV boosts stake in Hungary´s MOL to 18.6% 
portfolio.hu: According to a report by a news agency, OMV is contemplating a merger with MOL. Is that true? Wolfgang Ruttenstorfer: I definitely have not said that. That was only the interpretation of the news agency. We have said we have stepped up our shareholding from 10% to 18.6% because we think consolidation will come within the next two to three years and we want to be best positioned. That's it. There's nothing else. We'd be happy to enter a friendly negotiation with MOL management that we highly appreciate on any form of co-operation but nothing more. It's not our intention right now.
P.: If MOL chooses to refuse OMV's proposal for partnership, what options OMV will have? W. R.: That might happen, but it is hard to neglect that consolidation will take place for two reasons. We see increasing competition, not only from some western investors in Central Europe but also from the east, from major Russian companies that are looking at the area as a target market. That will step up competition and will push to the direction of consolidation. The second reason is energy supply security, because major projects are needed to cover the increasing demand of energy in Central Europe.
We think that in order to cope with these coming challenges there is a need for a strong CEE oil and gas alliance. Consolidation will come and we are prepared to wait.
P.: What can you do with your MOL stake, should there be no partnership? W. R.: We are happy that we have steppe up our stake to 18.6% and that we have increased our economic exposure. MOL was is and will remain a well-managed company, so this is a good investment anyhow.
P.: Do you wish to make a bid for MOL? W. R.: It's much too early to answer that question. We have just increased our shareholding and we are inviting MOL for friendly discussions, but that's it.
P.: Assuming MOL is turning down your offer... W. R.: As I've said, consolidation is on its way and whatever they (MOL) do at some point it (partnership) will make sense to discuss (our proposal) seriously.
P.: What is OMV's goal with MOL? Does it want to consolidate it or would it be content with its minority stake in it? A few years ago there had been long talks between MOL, OMV and PKN about a similar partnership. Do you find it possible for OMV to forge such an alliance with MOL and a Russian oil company? W. R.: It is too early to answer these questions in detail. Nothing is on the table.
Now we are following our core strategy to expand Exploration & Production, refining capacities and major gas projects, but apart from that we want to be in the best position possible when consolidation comes - with whomever.
We are not interested in anything else but a strong Central and Eastern European oil and gas company.
P.: Do you believe talks can restart between MOL, OMV and PKN? W. R.: I don't see that right now, but [...] let's wait and see.
P.: Do you have any plans to increase your holding in MOL in the near future? W. R.: That's too early to say.
P.: How many seats would you like to have in MOL's Board of Directors, should the partnership become a reality? W. R.: You expect too much from me. It's too early to give you estimates on specific structures.
P.: OMV has purchased MOL shares from VCP, which bought MOL shares from Megdet Rahimkulov. How come you have not bought the shares from the Russian businessman directly? W. R.: What we have said was that we have bought MOL shares on the market at around market prices for about EUR 1 billion. We do not disclose from whom we have bought the package.
2007.06.25 15:39
Hungary MOL says will pursue its own strategy 
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