MOL Chairman Hernadi Regards Surgut's MOL Stake Buy Unfriendly

Hungarian oil and gas company MOL Nyrt. (MOL.BU) firmly stated Wednesday it considers the purchase of a 21.2% stake in MOL by Russia's fourth-largest crude oil producer Surgutneftegas (SNGS.RS) as unfriendly.

"This step just cannot be friendly. The question is whether it is hostile or only unsolicited," MOL Chairman and Chief Executive Zsolt Hernadi said at a parliamentary committee hearing.

Surgut bought the stake from Austrian oil and gas company OMV AG (OMV.VI) for EUR1.4 billion earlier this week.

"Yes, we are aware of the fact that Russian firms usually ...(aren't) satisfied with a minority stake," Hernadi said in reaction to a question from a parliamentary representative.

When considering MOL's strategy, MOL not only looks at the interests of its shareholders but also energy supply security in the countries where it's active and the sustaining of competition, Hernadi added.

Energy sector mergers and acquisitions are only successful in Europe if the affected government approve of the transactions, historical evidence shows, MOL's Strategy Director Laszlo Varro, who was also present at the hearing, said.

The Hungarian government wants to keep MOL independent, Laszlo Keller, a government official, said at the hearing.

Company Web site: www.mol.hu

-By Margit Feher, Dow Jones Newswires; [phone]; [e-mail]