MOL Learns of Croatia Cancelling Friday's Meeting from Media

By Margit Feher

BUDAPEST--Hungarian oil and gas company MOL Nyrt. (MOL.BU) hasn't received an official communication from the Croatian government that it cancelled a meeting planned for Friday to discuss Croatian company INA d.d. (INA.ZG), MOL said Thursday.

MOL only learned of the meeting's cancellation or postponement from the media, a MOL spokeswoman told The Wall Street Journal, declining to comment further.

The Croatian government is aiming to regain management control over INA, in which MOL holds a controlling 49.1% stake and management rights, and Croatia owns a 44.8% stake.

The next round of talks between MOL and the Croatian government was supposed to focus on a change in INA's management model, but MOL refused to put that issue on the table, Croatian news agency HINA said Thursday, citing an unnamed source close to the Croatian government. HINA said Friday's meeting has been cancelled.

MOL, in which the Hungarian government is the single largest shareholder with a 24.6% stake, is in talks with Croatia about selling its INA holding 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 the 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]

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