MOL Says It Will Defend CEO

By Veronika Gulyas

BUDAPEST--Hungarian oil and gas company MOL Nyrt (MOL.BU) on Wednesday said it would defend itself against "outrageous actions" against its chief executive, Zsolt Hernadi, after an arrest warrant was issued for his arrest.

Croatia issued a warrant Friday after Mr. Hernadi failed to show up for questioning in connection with the corruption conviction of former Croatian Prime Minister Ivo Sanader. He was sentenced to 10 years in prison in November.

"MOL will defend itself by all legal means against the outrageous actions that have been taken against Mr. Hernadi and the company, which appear to be influenced by interests seeking to intimidate both the company and its chairman," the statement said.

Croatia's state attorney, the Zagreb country court and the justice ministry didn't immediately respond to phone calls seeking comment.

The charges against Mr. Sanader included allegedly taking bribes from MOL for granting the company full management rights over Croatian energy firm INA d.d. (INA.ZG) in 2008. Mr. Sanader, who denied any wrongdoing during his trial, was in office between 2003 and 2009.

Hungarian authorities dismissed the allegations against MOL after conducting its own investigation into the matter, MOL said.

"The investigation has revealed no evidence of improper or illegal business practices by MOL or any of its representatives," the statement said.

The Hungarian state holds a 24.6% stake in MOL, while MOL owns a 49.1% stake in INA and has management rights, while the Croatian government owns 44.8% of INA.

Write to Veronika Gulyas at [e-mail]