Austria Bounces Back IPIC Request To Up OMV Stake

Austria Bounces Back IPIC Request To Up OMV Stake

"The request was based on things that are not covered by our law," a ministry spokeswoman said, referring to legislation that requires non-European investors to get advance approval to increase stakes in strategic groups like OMV above 25 percent.

February 4, 2012 1:09 by Reuters

The Austrian government has dismissed Abu Dhabi sovereign wealth fund IPIC’s request for permission to raise its stake in energy group OMV to at least 25 percent, the economy ministry in Vienna said.

“The request was based on things that are not covered by our law,” a ministry spokeswoman said, referring to legislation that requires non-European investors to get advance approval to increase stakes in strategic groups like OMV above 25 percent.

She said that meant the substance of IPIC’s request had thus not been resolved either way and

IPIC would have to file again for approval if it wanted to buy more shares to boost its stake above the current 24.9 percent.

IPIC’s stake could surpass the 25 percent threshold should OMV move ahead with a share buyback that shareholders have authorised and IPIC if holds on to its stock.

Austrian state holding company OeIAG holds a 31.5 stake in OMV and coordinates with IPIC any shareholding changes.

Austria’s competition watchdog last month said there were no cartel factors blocking a higher IPIC stake in OMV. (Reporting by Michael Shields; Editing by David Holmes)