Unipetrol Soars On Rumour Of Merger Collapse

Shares in Unipetrol have soared on newspaper speculation that Agrofert, which is buying the Czech oil holding company from the government, may drop the purchase, analysts and traders said. The stock advanced 1.7 koruna, or 5.4 percent, to 33.50 koruna, 37 hellers from last Friday's three month high. It rose as much as 7.6 percent in early trading. Agrofert may consider pulling out of an agreement to buy Unipetrol for 361 million euros ($330 million), Mlada Fronta Dnes reported, without citing anyone. The speculation came after Agrofert last month said it would buy SKW Piesteritz, a German ammoniac maker. In addition, the units' performance has been deteriorating, which may have damped Agrofert's appetite for the company, Mlada Fronta Dnes said. Investors have said that they have little information on Agrofert's plans and its financial strength.

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