Bloomberg News

Mol’s Unit INA Board Rebuffs Croatian Bid for More Influence

September 26, 2012

INA Industrija Nafte d.d.’s management board rebuffed the Croatian government’s call for more influence in the refinery controlled by Hungary’s Mol Nyrt. (MOL) as the two sides squabble over the company’s future.

The Mol-dominated board yesterday determined the company’s governance follows legal requirements, it said in an e-mailed statement. Mol owns 49.1 percent and the government holds 44.84 percent. INA’s government-appointed board members yesterday demanded weekly management board meetings and requested all information be shared among all board members.

The proposal was the latest attempt in a series of efforts by Croatia to increase its influence in INA. The Budapest-based refiner won controlling rights of the company in a shareholding agreement in 2009.

Croatia, through a supervisory board, appoints three members in the six-member management board. Board President Zoltan Aldott, a former Mol executive, has a swaying vote.

Former Croatian Premier Ivo Sanader is on trial in Zagreb for allegedly taking a bribe from Mol Chairman Zsolt Hernadi between 2008 and 2009, when he was still premier, in exchange for ceding control of INA. Sanader and Mol have denied the accusations.

To contact the reporter on this story: Jasmina Kuzmanovic in Zagreb at jkuzmanovic@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


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