MOL begins talks on PKN Orlen purchase; OMV may be invited in later

Hungarian oil group MOL has started exclusive talks on buying a 17.58% stake in Polish oil giant PKN Orlen, but the door has been left open for Austrian group OMV to join the group at a later date. According to an insider close t o the privatization process, MOL has proposed that first it fully merges wit h PKN, and then OMV, which had been competing to buy the PKN stake, would be invited to join. According to analysts, the merger between PKN and MOL could be a tortuous process, possibly lasting several years. Shares in the merged company could be offered to OMV at a high premium, generating further revenu e for the Treasury. (Puls Biznesu, p. 7) T.J.