Equity 19 October 2006, 12:35pm

INTERVIEW - OMV chief says merger with PKN, MOL not short term possibility

Portfolio

Austria's OMV has not yet decided whether to increase its stake in Hungarian fuels group MOL, chief executive officer Wolfgang Ruttenstorfer told Portfolo.hu in an interview. He added co-operation with MOL and Poland's PKN was possible but definitely not in the near future.

To a question what OMV's intention was with its 10% MOL package Ruttenstorfer said they have not yet decided yet but added they were “highly satisfied" with this investment for a number of reasons.

OMV's management is pleased with the acquisition of the MOL stake firstly because they managed to beat others who were - according to market rumours - interested in it, the CEO said.

“Secondly, the purchase of the MOL package proved to be a very good investment decision [...] and MOL has an excellent management," Ruttenstorfer added.

MOL considers OMV as a financial investor and the CEO said he agreed with this view.

“For the time being, we are financial investors, given that we are not taking part in MOL's decision making process and we only receive dividend from the company. At the same time, we have targeted to establish a special relation with the company, which I believe is now constructive and favourable."

Ruttenstorfer stated that for the time being OMV is not considering increasing its 10% holding in MOL.

“This issue is not on our agenda now."

The CEO said OMV was not conducting talks with MOL and PKN about a possible co-operation, but stressed they were open to such discussions.

“[...] we would be pleased to discuss this issue with both companies," he noted.

“I believe a potential merger would create great value for shareholders," Ruttenstorfer added.

To a question whether he finds some kind of alliance with MOL and/or PKN viable in the next 5 to 10 years, he said “Yes, naturally!".

“Nevertheless, this cannot be expected in the immediate future," he added.

“A number of synergy opportunities would open up with a co-operation, which would be beneficial for the entire region, and I believe the outcome of such a deal would be excellent."