Austrian oil and natural gas group OMV launched an offer of over 14 billion euro to take over almost 80% of the Hungarian oil company MOL. Should the transaction occur the resulting company would be the biggest in Central and Eastern Europe and would be listed at the Stock Exchanges of Austria and Hungary.

OMV is ready to deliver the payment to the Hungarian group immediately after all vote restrictions are eliminated.

MOL shares were suspended at the stock exchanges in Budapest and Warsaw today.

Plans to take over MOL were first made public by the Austrian group on June 25 when it announced its increase in the company’s shares, from 10% to 18.6%, at an estimated transaction of 1 billion euro, reads Romanian news daily Business Standard.

OMV announced on Tuesday that meanwhile its MOL participation grew up to 20.2%.

However, the relation among the two groups is tense because of OMV’s intent to takeover MOL.

OMV management considers that a combination among OMV and MOL is a unique opportunity to create one of the first integrated gas and oil companies in Europe, informs an OMV press release.

OMV CEO, Wolfganf Ruttenstorfer said OMV will start talks with the main MOL shareholders.

However, MOL rejects OMV’s proposal, a press release of the Hungarian company announced on Tuesday.

MOL representatives said OMV’s approach underestimates the capacity and future perspectives of the Hungarian company.

The OMV approach will not be considered by MOL which will refuse any direct dialogue on the issue.

Corporate Communications Vice President for MOL, Szabolcs Ferencz said that the announcement did not contain any new information compared to the previous proposal already rejected by the MOL board.

Ferencz added that MOL has very good future opportunities and perspectives to develop while OMV’s proposal is restrictive and does not offer any benefits to its shareholders.