The Financial Market Office (UFT), the financial market regulatory authority in Slovakia, has so far not obtained all requested information from foreign stock exchange commissions concerning the disputed transaction in Slovnaft shares from March 20, UFT spokesman Marek Kacmar told SITA. „Unless new facts emerge, the UFT will be able to complete its investigation in a relatively short time after it obtains this information, “ said Mr. Kacmar. The UFT considers the disputed transaction as very complicated and its solution will depend on cooperation with capital market supervising bodies from six countries. He also added that without this information it is impossible to close the investigation.

Mr. Kacmar said that the UFT in its decision is bound by the preliminary injunction of the Bratislava Regional Court from April 24, 2003, preventing the UFT from suspending or canceling the settlement of the transaction. The court injunction would prevent the UFT from taking any action even if manipulation of share prices is eventually proven. Although the UFT has appealed against the verdict of the regional court complaining against interfering into its powers, the court so far has not decided on the appeal. According to Mr. Kacmar, the UFT has acted in line with the valid law in its investigation of the transaction with Slovnaft shares.

In the disputed transaction on the Bratislava Stock Exchange (BCPB) floor on March 20, 202,000 shares of the Slovakia’s largest crude oil refinery Slovnaft were transferred at a price of SKK 1,541 per piece. Settlement of the transaction was suspended because Slovnaft’s majority owner, Hungarian oil company MOL, believed that the transaction was an attempted price manipulation. Financial company J&T represented the seller in the transactions while the name of the buyer is unknown. This deal would increase the average price of Slovnaft shares for the past six months from SKK 1,100 to SKK 1,380. The average price is decisive for setting the price, which MOL should pay to minority shareholders for Slovnaft shares in a takeover bid. BCPB has settled the disputed transaction on May 23, when a 30-day deadline for which the UFT has suspended its settlement lapsed.