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Délhús raises stake in Pick Szeged

Meat company Délhús, controlled by Sándor Csányi, the head of Hungary's biggest commercial bank OTP, has increased its stake in Pick Szeged, Hungary's best-known sausage maker, from 32.17% to 98% as a result of a public purchase bid closed on September 9, Délhús announced. Meat company Délhús published on July 21, 2005 a public purchase offer for Pick Szeged at a price of Ft 1,046 per share. The price was well under Pick Szeged's net assets per share of Ft 2,699. Prior to the public bid, Pick Szeged's other main shareholders were two private Hungarian investors, József Brazsák and János Csarodai, who each held just under a third of the company. Both had to sell their stakes because of a PSzÁF resolution dated July 6, 2005. PSzÁF found the two men had colluded to obtain their stakes in Pick Szeged and fined them each Ft 50 million, a record fine for the
offence. PSzÁF also fined Délhús and holding company Arago Ft 30 million apiece for acting together to give Délhús undue influence in Pick Szeged at a shareholders' meeting in April. Délhús, Mr Brazsák and Mr Csarodai all bought their stakes in March and April from Arago, a holding company owned by Hungarian investors. The State Privatisation and Holding Company (APV) holds a golden share in the company. Pick Szeged reported pre-tax losses of Ft 1.866 billion in the first half of 2005, compared to pre-tax losses of Ft 417 million in the same period last year. Consolidated net revenue was Ft 13.54 billion in H1, down 34 % yr/yr.