MNB reprimands 4iG, MTel for violating rules on market abuse
Image by Jessica Fejos
The National Bank of Hungary (MNB) on Thursday said it fined listed IT company 4iG HUF 5 million for keeping an inaccurate record of the timing of its failed acquisition of T-Systems Magyarország, according to state news wire MTI.
Image by Jessica Fejos
The central bank said 4iG had "wrongly determined" when the insider information on the deal falling through had "actually occurred", violating a European Union regulation on market abuse.
MNB argued that T-Systems Magyarország owner Magyar Telekom had also violated the EU regulation because it did not sufficiently explain why it had not informed the central bank and financial market watchdog of the failed deal in a timely manner.
It noted, however, that Magyar Telekom had recorded accurately the time it was known the T-Systems Magyarország acquisition would not move forward.
4iG said early in December that it had initiated the termination of talks on its planned acquisition of peer T-Systems Magyarország from MTel. 4iG chairman-CEO Gellért Jászai said the decision to walk away from the deal was "a rational one taken solely on the basis of business considerations".
He explained that leverage 4iG would have needed to buy the much bigger T-Systems Hungary would have limited its ability to pay dividends.
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