PKN Orlen bidding war intensifies under SLD shadow

The bidding war between Austrian OMV and Hungarian MOL continues for the 17.6% stake in domestic oil giant PKN Orlen. According to Puls Biznesu daily, sources close to the privatization bid have revealed that the Hungarian MOL increased its per share offer from euro 7.86 to euro 8 in an attempt to out-bid Austrian OMV. The MOL offer is euro 0.04 more than OMV's and gives a premium over 100% higher than the stock exchange valuation. Another factor Nafta Polska, the agency responsible for the oil sector privatization, is considering is that should the transaction be concluded, PKN Orlen could take over the equivalent number of shares in MOL, compared to only a maximum 10% stake in OMV. Time is of the essence; the whole deal may be cancelled under the incoming SLD (Democratic Left Alliance)-UP (Labor Union) coalition government. (Puls Biznesu, p.7, Prawo I Gospodarka, p. 14) P.J.