Commenting on yesterday's trading in INA shares on the Zagreb Stock Exchange, Szollar said it contained elements of covert, speculative and manipulative operations that could be seen as illegal.

Asked to specify those elements, Szollar said it was not known who was buying INA shares and who was behind their purchase, describing it as speculative dealing in which prices could have been coordinated and manipulated.

"Manipulation of share prices in Croatia is illegal and HANFA (Croatian Financial Services Supervisory Agency) should investigate it," said Szollar.

Asked if MOL had complained to HANFA over yesterday's trading in INA shares, he said that MOL had not filed any complaints and that it had confidence in HANFA.

The latest developments on the stock exchange are not a counter-offer to MOL's offer but an act of secret speculation and manipulation that will not contribute to Croatia's energy stability, Szollar said, adding that regardless of the outcome of the transactions, MOL would not do business with those who were conducting them or were behind them.

He added that MOL's offer to INA's small shareholders to buy their shares at a price of HRK 2,800 per share was better than the price of HRK 2,830 at which INA shares were being traded on the Zagreb Stock Exchange because it was not only about the difference of HRK 30 but about the responsibility of small shareholders, who he said should care about whose hands INA would eventually end up in.

Responding to a reporter's remark that newspapers were saying that pension insurance funds were behind yesterday's purchase of INA shares and that MOL would not do business with them if they were the buyers, Szollar said he was familiar with the reports but that he would be surprised if pension funds were buying INA shares because under international rules pension funds should be careful about where they invest funds for citizens' pensions.

Responding to a reporter's remark that the government last week announced that it would also accept informal agreements with all investors whose goals and plans coincided with its own in terms of protection of ownership, investment and management in the energy sector, and that it was possible that the government took part in yesterday's transactions, Szollar said he agreed with the government's plan to protect Croatia's energy security and that MOL's offer was in line with that plan because it was open, fair and transparent.

"I doubt that an unknown investor could contribute to that goal," he said, adding that MOL had excellent relations with the government.

Asked about MOL's next moves, notably in the light of yesterday's unofficial signals from HANFA that it would not interfere in the current developments, Szollar said that time would show.

"MOL is playing openly, which cannot be said about others, considering yesterday's trading on the stock market which is contrary to MOL's way," he said.

Asked if MOL had informed the Croatian government about its offer to buy shares held by the small shareholders, he said that MOL had notified the government and that he did not want to comment on claims that it had not done it.

He added that the Shareholders' Agreement between the government and MOL would not be changed even if MOL acquired a majority stake in INA.

Asked about the course of negotiations between the government and MOL on the separation of INA's gas business from the rest of the company, Szollar said the government and MOL had settled all outstanding issues and that the government's response was being awaited.

He said the same timing of MOL's offer to the small shareholders and talks on the gas business was accidental because MOL had made the decision on its offer to the small shareholders back in September.

Szollar said the time period during which the offer can be accepted started running on Tuesday and that in the coming days MOL would contact all 30,000 small shareholders to provide them with all information on its offer.

MOL's offer can be accepted from 15 December 2010 until 14 January 2011, the company said on Tuesday.