The HANFA Management Board at its extraordinary session on Monday adopted a decision ordering the ZSE to, without a delay, suspend trading in INA shares until 8 April.

On Monday, March 28, HANFA suspended trading in INA shares on the Zagreb Stock Exchange until the close of trading on April 1. The agency said that while monitoring trading in INA shares it had found significant trading by foreign investors, so it had asked relevant foreign regulators for necessary information in order to ensure transparent trading, protect investors and ensure regular and orderly trading on the capital market.

"As certain information on investors was gathered in the meantime, HANFA believes that in order to protect investors and secure regular trading in an organised market it is necessary to prolong the suspension until the end of the trading day on April 8," HANFA said today.

Hanfa said it had submitted all available information on the investors and the course of trading in INA shares to other authorities in Croatia.

Trading in INA shares on the Zagreb Stock Exchange had intensified after the Hungarian oil company MOL last December published an offer to purchase INA shares from small shareholders for 2,800 kuna per share, after which pension funds started buying INA shares for 2,830 kuna. Then unidentified investors also became involved, collecting shares into custodian accounts.

Some media speculated that MOL was behind the unidentified buyers.

The single largest shareholder in INA is MOL with 47.26 per cent of the shares, while the Croatian government holds 44.84 per cent.

Prime Minister Jadranka Kosor announced last Tuesday that the government would propose amendments to the law regulating INA's privatisation to ensure that no one could own more than 49 per cent of its shares.

Kosor explained that proposed amendments were prompted by "events relating to the decision by Hanfa."