Hungarian oil and gas group MOL issued a statement on Thursday resolutely dismissing any allegations and accusations of market manipulation and announcing that it would seek legal remedies against the decisions and actions taken by the Croatian Financial Services Supervisory Agency (HANFA).
"HANFA is tendentiously trying to ruin the reputation of MOL. MOL will not allow this and will exercise available legal remedies against HANFA decisions and actions," MOL said.
The statement came after HANFA accused MOL on Wednesday of manipulating the stock market by deliberately spreading, first through its general offer for the purchase of shares of Croatian oil and gas company INA and later through media, information that gave false and misleading signals for the purpose of acquiring INA shares.
HANFA found that with its general offer MOL proclaimed and stated a number of times that the purpose of acquiring INA stock was to give present and former employees, as well as private persons who had purchased INA stock in the initial public offering, another chance to sell the stock to MOL, at a price significantly higher than the market price, which, according to HANFA, constituted information that gave false and misleading signals regarding trading in INA stock.
"The accusation of HANFA is simply wrong. Should HANFA have asked the right questions and asked when this call option agreement was signed, HANFA would know exactly that its accusation is profoundly wrong and unfounded. All the purchased shares and option agreements were made only after the expiry of our private offer and were made fully in line with all applicable rules and regulations," MOL said in its statement.
"Our intention was always crystal clear and we communicated it straightforwardly and honestly. HANFA ignores the fact that MOL has made its offer in December 2010 for the entire free-float of INA shares i.e. 8.09%. HANFA tendentiously ignores the fact that MOL did not acquire a single share during the period of the private offer but the ones offered to it (altogether 10.082 pieces)," the statement said.
Since the private offer expired on 14 January 2011, "MOL decided to go further and bought a total of 21,009 INA shares through professional brokers between 31 January and 17 March. Besides, also after the private offer, MOL concluded an option agreement for 1.6%. These shares are not yet acquired by MOL. HANFA has not investigated only guesses in its decision about the 1.6% of the shares for which MOL holds an option."
"MOL has always acted honestly, clearly and transparently during and after the offer. MOL has always followed all regulations of the capital markets and Croatian Law. MOL firmly rejects any allegations and accusations of market manipulations," the statement concluded.
