Malev struggle to change direction delayed again by failure to appoint CEO

Published: 7/28/1999

The recent EGM of Hungarian airline Malev continued the long running saga regarding ownership of the airline and ended without any conclusion, according to Malev director Miklos Bence. The meeting should have decided about the composition of the board, and the appointment of the CEO (www.concise.org 26th May 1999). Beforehand the minority shareholders particularly the banks, substantial minority holders of Malev, should have made an agreement on the sale of their 35% shareholding. Before the meeting majority owner the Hungarian State Privatisation Agency (APV Rt.) announced that Air Invest Kft., owned by Hungarian banks Magyar Kereskedelmi Bank (MKB) and OTP, had accepted a provisional plan to sell their 35% stake in Malev. Increasing APV's share to 97%, enabling the Hungarian state to find a long-term strategic partner for Hungarian Airlines. Bence emphasised, that while the board has not yet agreed on any changes in ownership. He hopes that the decision will be taken at some point in July. The shareholders are expecting another general meeting in the near future.

Article ID: 704