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Cashline buys 24% stake in Synergon

Cashline Befektetési Holding, a Hungarian investment company, said it bought a 24.1% stake in computer-service provider Synergon Nyrt for an undisclosed price, ahead of a Synergon shareholder meeting. Cashline, controlled by Otto Albrecht, bought the shares on Monday and yesterday on the Budapest Stock Exchange (BSE), Synergon said in a stock exchange statement. While Cashline's purchase was not revealed, it's valued at Ft 2 billion ($9.3 million) using yesterday's closing price of Ft 896. Synergon installs computer networks and sells technology to governments and corporate clients in Croatia, the Czech Republic and Hungary. Its shareholders will meet Sept. 8 to elect new management and supervisory boards after proposals at a meeting in May didn't garner enough support from investors. Cashline bought a stake in Synergon to boost the computer company's value and profits, news Web site Portfolio reported, citing Albrecht. There are “significant reserves” in Synergon's performance, Portfolio cited Albrecht as saying. Pannonplast Nyrt, a Hungarian maker of yoghurt cups and some plastic packaging, is also seeking some control over Synergon after boosting its stake to 13.5% from 4.2% earlier this month. The Hungarian unit of Raiffeisen International Bank AG, an Austrian bank that does most of its business in eastern Europe, said Aug. 17 it lowered its stake in Synergon to 14.8% from 15.01%. Synergon shares fell 2.6% to 896 forint in Budapest yesterday, valuing the company at 8.6 billion forint ($39.9 million). The stock gained 78.1% so far this year. (Bloomberg)