MNB reprimands 4iG, MTel for violating rules on market abuse

Sights

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.

Hungary Account Deficit at EUR 561 mln in Q4 Debt

Hungary Account Deficit at EUR 561 mln in Q4

Moldovan Pensions to be Increased as of April 1 World

Moldovan Pensions to be Increased as of April 1

Schoenherr Names Miklós Klenanc as Head of Local M&A Practic... Appointments

Schoenherr Names Miklós Klenanc as Head of Local M&A Practic...

Hungarian Wine Marketing Agency to Host Summit Drinks

Hungarian Wine Marketing Agency to Host Summit

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.