Budapest shares edge lower in morning trade, in line with European markets

Budapest shares edge lower in morning trade, in line with European markets

	Published : Wed, 30 May 2007 10:29 By : Agencies Print this Story

BUDAPEST (Thomson Financial) - Budapest shares were trading slightly down this morning, but showed more robustness than many major European markets as pharmaceuticals outperformed, dealers said.

At 10.51 am the BUX index of leading Hungarian shares was down 0.01 pct at 26,024.83.

Pharmaceutical company Egis continued to outperform on rumours that its French majority owner Servier may be acquired, forcing a public offer for Egis at above the current price.

Another rumour suggests that Servier may be preparing to de-list Egis.

Erste Bank analysts ruled out yet another variation that Servier was behind the recent buying, pointing out that it would have to make a public offer to increase its stake above the current 51 pct.

'If Servier wants to increase its stake it must give a public bid for the other shareholders as it achieved its 51 pct stake without a public bid and before the year 2000. The securities act changed in that year with respect of takeover rules,' said Erste.

Servier have yet to respond to enquiries by Thomson Financial News while Egis have said that they are unaware of any plans to delist the company.

Away from Egis, Richter, the larger of the two pharmaceuticals, ticked up 0.59 pct to 38,200 forints.

Elsewhere, oil stock MOL edged down 0.22 pct to 23,050 as speculation surrounding a possible merger continues to rumble on.

The financial daily Vilaggazdsag, citing anonymous sources, said that an asset swap between MOL and Gazprom is not on the agenda.

Other rumours suggest that Russian emigre Medget Rahimkulov is preparing to bump his stake in MOL to 10 pct after acquiring over 5 pct of the company in a series of transactions last week.

In other news concerning MOL, Montengrin newspaper Vijesti reported that MOL have placed the lowest offer for Montenegro's Bonus, and appears to be out of the running.

Away from MOL, Magyar Telekom ticked up 0.65 pct to 925 forints after having announced the start of a restructuring program which dealers say will add 20-30 forints value to the shares.

Elsewhere, banks were mixed, with state-controlled mortgage bank FHB trading flat at 2,320 forints and OTP edging down 0.57 pct to 9,610 forints.

edward.krudy@thomson.com

ek1/cmr

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