MOL, Croatian Government Views on INA Continue to Differ

By Margit Feher

BUDAPEST--The views of the Croatian government and the management of Hungarian oil and gas company MOL Nyrt. (MOL.BU) continue to significantly differ as to the management model of Croatian peer INA d.d. (INA.ZG), MOL said Friday after talks between the two parties.

MOL, which holds a controlling 49.1% stake and management rights in INA, is convinced that INA's management model is in line with international practice as well as with Croatian and European regulations, MOL Managing Director Jozsef Molnar said in a release.

Croatia, which owns a 44.8% stake in INA, is seeking to regain control of the Croatian firm.

Friday, it proposed a new management model to MOL, Croatian state news agency HINA said.

"The Croatian government will certainly do all it can to protect INA, to negotiate a position for INA in the interest of the company, its employees and, eventually, Croatia's energy stability," HINA quoted Croatian Economy Minister Ivan Vrdoljak as saying after the talks.

The parties will continue the negotiations, HINA said.

MOL, in which the Hungarian government is the single largest shareholder with a 24.6% stake, is in talks with Croatia about INA amid an intensifying diplomatic spat.

A Croatian court has issued an arrest warrant for MOL Chief Executive Zsolt Hernadi after he failed to show up for questioning in connection with a corruption case in which former Croatian Prime Minister Ivo Sanader was convicted.

MOL has said Mr. Hernadi wasn't to blame for any wrongdoing and a Budapest court has declined the extradition of Mr. Hernadi on the grounds that a Hungarian criminal investigation has found Mr. Hernadi innocent.

Write to Margit Feher at [e-mail]