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Czech Unipetrol raises Paramo stake above 90 pct

Fri Aug 29, 2008 8:39am EDT

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PRAGUE, Aug 29 (Reuters) - Czech oil processor Unipetrol (UNPEsp.PR) will raise its stake in refining unit Paramo to 93 percent after agreeing to purchase a 3.73 percent stake from its Polish parent PKN Orlen (PKNA.WA), Unipetrol said on Friday.

The purchase opens the way for Unipetrol to launch a takeover offer for the remaining Paramo shares, allowing the oil group to improve its capital structure.

Unipetrol's investor relations head said the group still has to decide on going ahead with a squeeze-out.

"That we want to strengthen the ownership structure in Paramo is long-known," Radek Nemecek said. "The board would have to decide on a squeeze-out."

Unipetrol bought the PKN stake for 47 million crowns ($2.80 million).

Over-capitalised Unipetrol has struggled to find new acquisitions and is considering a share buyback of up to 10 percent to increase its debt load. (Reporting by Jan Korselt; Writing by Jason Hovet; Editing by Greg Mahlich)



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