MOL says INA share swap with govt a 'win-win' deal

BUDAPEST, Oct 7 (Reuters) - Hungarian oil and gas group MOL MOLB.BU, on track to buy a majority in Croatian peer INA INA.ZA, said on Tuesday it would seek a share swap deal with the Croatian government after its public bid ends later this week.

MOL, which already owns 25 percent of INA, has launched a bid for the around 30 percent of INA not owned by the Zagreb government. The bid, worth 2,800 kuna ($534.1) per share and valuing the whole of INA at 28 billion kuna, expires on Friday.

Shares totalling 21.7 percent of INA had been tendered to the offer by early Monday, raising MOL's stake to 46.7 percent. [nL5306850]

MOL is expected to resume separate talks with the Croatian government, which owns 44 percent of INA, on a new shareholders' agreement and a possible share swap that could involve a 19 percent stake later this month after the bid expires.

MOL Chief Executive Gyorgy Mosonyi said on Tuesday several options were on the table, but a share swap looked the best deal for both parties involved.

"I have said it several times that a share swap solution would be a win-win situation for both parties," Mosonyi told reporters on the sidelines of an energy conference.

"For MOL, this would be a cash-saving solution, while for the Croatian government it ensures that ... it has the relevant rights from the aspect of safety of supply," Mosonyi said.

The government, which wants to keep 25 percent of INA until Croatia's European Union entry, earlier said it might be interested in a share swap to retain a say in INA's business policy. Croatia aims to become an EU member around 2011.

"I think it is a legitimate expectation of a government to have a position in safety of supply and we absolutely support that," Mosonyi said.

At 1133 GMT, MOL shares traded up 0.2 percent at 14,505 Hungarian forints on the Budapest bourse, outperforming a 0.9 percent decline in the wider market .BUX. (Reporting by Gergely Szakacs; Editing by Simon Jessop)