UPDATE 2-Austria's OMV drops Petrol Ofisi takeover plan

Wed Nov 18, 2009 8:40pm GMT
 
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* Drops plan to increase stake, gives no reason

* Has previously warned row with authorities delaying deal

* Companies agree to "stable partnership" (Adds detail, background)

VIENNA, Nov 18 (Reuters) - Austrian energy group OMV (OMVV.VI) has dropped its plan to take full control of Petrol Ofisi (PTOFS.IS) after warning that a row between the Turkish group's owner and local authorities could delay such a deal.

OMV said in August it wanted to increase its 42 percent stake in the petrol retailer to help develop Turkey its third strategic centre, after Austria and Romania.

But on Wednesday OMV said it had ended talks to buy Dogan Holding's (DOHOL.IS) stake in Ofisi, worth around $1.5 billion. It did not give a reason.

"Both companies now agreed to continue their stable partnership in Petrol Ofisi," OMV said in a statement.

Dogan's media arm, Dogan Yayin (DYHOL.IS), has been slapped with a record $3.3 billion tax fine by the Turkish government, threatening the group's survival in what Dogan says is a politically motivated move by Turkey. [ID:nLN587973]

OMV's chief executive warned last month that the tax row, which does not affect Petrol Ofisi's business directly, was delaying his company's plans to increase the stake. [ID:nLN563187]   Continued...

 

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