UPDATE 1-Hungary’s MOL says to pay $517 mln in dividends
April 3rd, 2008 | by admin |(Adds detail, background)
BUDAPEST, April 3 (Reuters) - Hungarian oil and gas firm MOLMOLB.BU said it has proposed paying a total dividend of 85billion forints ($516.8 million) on 2007 earnings after payingout 50 billion forints a year earlier.
If approved by the April 23 annual general meeting, the firmwould pay out just under 40 percent of its 216.7 billion forint2007 net profit to shareholders.
Separately, MOL said its board had rejected some of theproposals for the AGM from Austria’s OMV (OMVV.VI: Quote, Profile, Research), its largestsingle shareholder with just over 20 percent, but agreed toinclude an OMV proposal to appoint an auditor to examine certaintreasury share lending agreements and option deals which MOL hassigned with friendly institutions.
OMV, which wants to take over MOL, had sought shareholdersto express opinion about MOL’s control over its own shares andalso asked for the publication of a full voting record.
MOL said both proposals were against Hungarian company lawsand MOL’s own articles of incorporation.
OMV and MOL have been locked in a takeover battle since lastsummer and some analysts said OMV was preparing for a showdownwith MOL’s board and management at the AGM.
OMV has proposed a 14 billion euro takeover of MOL oncondition the firm dismantles its takeover defences.
MOL has rejected the offer saying it would destroyshareholder value, and it has fought the takeover by amassingcontrol over its own shares or selling them to friendlyinvestors.
