OMV Lists Boycotts, Litigation, Antitrust Probe As Risks In Romania

05.19.2011 By Andrei Circhelan

Austrian oil and gas group OMV on Thursday listed a series of risks faced by Romanian OMV Petrom (SNP.RO), including gas station boycotts triggered by price hikes, litigation with past or current employees and fines from local authorities.

In the prospectus for a share capital increase of EUR900 million, OMV notes that pump price increases operated by Petrom over the past year resulted, and may still result, in boycott by consumers.

In addition, litigation with former or current employees may force Petrom to rehire the people in question or pay compensation, whose value cannot be estimated.

Furthermore, the company may face sanctions following a price fixing investigation started in 2005 by the Romanian competition regulator on the fuel distribution market.

OMV holds a 51.01% stake in Petrom since 2004. Other shareholders include the Economy Ministry with 20.63% and investment fund Fondul Proprietatea (FP.RO) with 20.11%.