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UPDATE 1-OMV eyes 1 bln euro share issue -sources

Published 10/02/2009, 08:24 AM
Updated 10/02/2009, 08:27 AM
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* Wants to buy further stake in Turkey's Petrol Ofisi

* BofA-ML, Barclays, JP Morgan, UniCredit hired

* OMV declines comment, shares drop 4.3 percent

(Adds OMV no comment, background)

By Daisy Ku

LONDON, Oct 2 (Reuters) - Austrian energy group OMV may issue new shares worth around 1 billion euros ($1.45 billion) to help fund the purchase of a controlling stake in Petrol Ofisi, sources familiar with the matter said.

OMV, which already owns 42 percent of the Turkish fuel retailer, is in talks with majority shareholder Dogan Holding to acquire up to a further 54 percent.

OMV declined to comment on whether it was working on a share issue. The group got shareholder approval to issue 77.9 million new shares earlier this year, which would be worth around 2 billion euros at current prices.

OMV shares fell 4.3 percent by 1221 GMT, extending early losses.

The Petrol Ofisi stake that OMV does not already own would cost around $1.5 billion at current prices. OMV has said it aims to keep its gearing below 30 percent, which it would fail to do if it bought the stake without making a capital increase, analysts say.

The sources said that OMV has hired Bank of America Merrill Lynch, Barclays, JP Morgan and UniCredit for the share offer, whose timing will depend on how talks with Dogan progress.

OMV wants to establish Turkey as its third strategic centre, after Austria and Romania.

(Reporting by Daisy Ku; editing by John Stonestreet)

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