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OMV seeks €13.5 bln credit from JP Morgan, Barclays for MOL purchase

OMV AG is in talks with JP Morgan and Barclays on arranging a credit line of €13.5 billion, enough for the Austrian oil and gas company to finance a take over of Hungary's MOL Nyrt, according to “insiders” cited in a report in the Austrian daily Österreich.

OMV AG said in a statement that it had almost doubled its stake in MOL to 18.6%, sending MOL Nyrt more than 5% higher and boosting shares in oil companies in neighbouring Poland. OMV spokesman Thomas Huemer told Thomson Financial News that the company's standing policy is not to comment on existing or possible credit lines.

Huemer said that OMV's stance towards MOL has not changed since last week, when the Austrian company announced it had raised it stake in MOL to 18.6% from 10% and called on MOL's management to enter into a “constructive discussion” on the merits of closer co-operation between the two companies. “We remain convinced that a rational approach is better than an emotional one,” Huemer said, touching on the negative reaction by MOL's management and leading Hungarian politicians to OMV's move. (sharewatch.com; forbes.com)