Hungarian lawmakers approved on Monday a law aimed at shielding (26 550 HUF, -1,85%) from a hostile takeover bid by (49 EUR, 0,06%). The law was passed by 337 votes to four and now needs only the approval of Hungary's president which is a formality. There is a significant change in the law to ease of the EU’s concerns accordingly it will require 75 percent support from shareholders to remove board members. In the case of , government approval is required to abolish the rule that limits investors' voting rights at 10%.
With the law we have arrived to the end of a chapter in the MOL-OMV takeover story but OMV/Austria is likely to open another chapter with initiating a debate of the law in Brussels. We expect a legal process can take years, which leaves time to Hungary/MOL to secure independence of in the meantime. is likely to make a press conference on the issue today announcing what actions they plan to make in Brussels. Market, however, might have the final reading that there is relatively low chance for a short/mid term decision from the EU which could favor . Thus, we see the news to weight on share price today lowering the takeover premium further.