Surmountable defence

27 September 2007 By Una Galani Follow @ugalani

The Hungarian group vehemently opposes a E14bn offer from OMV, its Austrian oil and gas rival. Despite a 20% premium, the board won t talk. Yet Mol s shareholders are understood to favour a deal. Overcoming the shabby defence won t be easy, but investors aren t powerless.

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Hungarian oil and gas group Mol on Tuesday rejected a conditional offer of Huf32,000 (E48) a share from Austrian rival OMV which valued the group at E14bn. The offer represents a 44% premium to Mol's undisturbed May share price, and a 19% premium to the preoffer price.

OMV's offer is conditional on Mol removing a 10% voting right cap, and Mol's board and friendly institutions cancelling or neutralising a 40% stake they control.

OMV said it decided to outline the terms of an offer after a road show had shown that a majority of investors favoured the price and logic of a deal. The management of the two companies have previously engaged in friendly cooperation talks.

OMV holds a 20.2% stake in Mol. Shares in Mol closed yesterday at Huf28,000.

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