MOL calls for an end to double-talk from OMV

MOL notes OMV’s continued statements to the market that it is ready for “friendly structured discussions” with MOL to consider options to work together to face a potential future industry consolidation – and the associated implication that MOL is unwilling to consider any such option. It has been clear to MOL for some time though, that OMV’s interest in a relationship with the company is aimed at achieving control of MOL.

Despite public statements of friendly discussions, OMV has, in the past two months, increased its stake in MOL to 18.6%, without consulting the MOL Board, and made an unsolicited and conditional approach to acquire control over the company (this approach was unanimously rejected by MOL’s Board, as announced on the 16^th July 2007).

As MOL has pointed out several times, it continues to believe the greatest shareholder value will be achieved through the pursuit of its stated independent strategy based on the combination of internal efficiency, strong organic growth as well as value-creating acquisitions and partnerships.  MOL has, both through public statements and acquisitions announced recently, demonstrated how it will deliver its independent strategy and targets.

A fundamental part of MOL’s strategy has always been to investigate options to achieve enhanced shareholder value through business or asset level cooperation, where legally permissible, with its peers.

In response to the evolution of the European gas market, MOL assessed all rational options for co-operation in the gas value chain and identified a specific opportunity to cooperate with OMV in the Gas business in Spring 2007, with the additional potential to look for gas-producing assets outside the region, together.  Utilising the two companies’ adjacent territories and existing capabilities, while also addressing the relative limitations of their asset bases in an international context, such a cooperation would have offered attractive medium term growth and value uplift for both groups' shareholders.

After carefully investigating all rational business opportunities, MOL found this as the only area where such cooperation would create meaningful shareholder value without triggering the requirement for significant regulatory disposals.  OMV rejected these ideas expressing a willingness to cooperate only where a guaranteed path to control of MOL could be secured for OMV. MOL made clear to OMV that an acquisition of MOL and a combination with OMV would be value destructive.

MOL believes that OMV’s continued statements of “friendly discussions” amount to double-talk and misrepresent their true intent to acquire MOL.

MOL remains, however, open for discussions to consider joining forces with OMV in selected segments of the natural gas business. MOL has carried out a full legal and ownership unbundling in this area, making it able to connect with other regional assets.

MOL confirms that it is committed to regional industry development through genuine partnerships and with consideration to national, regional and European level energy security. However, this must be effected in a value accretive manner for all participants. MOL asserts that only a plain and honest discussion will serve this objective for shareholders and consumers.