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MOL purchase may threaten bourse

MOL purchase may threaten stock exchange, if the OMV-MOL takeover succeeded the Budapest Stock Exchange (BÉT) would be undermined according to the biggest London economic journal Euromoney.

Hungary’s oil giant MOL is the biggest company on Budapest Stock Exchange and Austria’s OMV’s arrival in the summer was a “rude wake-up call”. The journal recalls that a number of local companies have been acquired by foreign competitors due to the hasty privatization of the 1990s. The analysis also raises concern about substantial withdrawals in the past few years. Francois Regnier, CEO of BNP Paribas Hungary told Euromoney that in total more companies left than arrived “which is not a good process for the stock exchange”. In 2006 and 2007 there were only 3-3 new issues at BÉT compared to 70 in Warsaw – the journal reports. The magazine sees a clear danger awaiting the Hungarian capital market citing György Jaksity, managing director of Concord Értékpapír Zrt saying that the stock exchange “needs companies that are traded … if we take away MOL Nyrt and OTP Bank there won’t be much left”. (Gazdasági Rádió)