[ALBSA-Info] Financial Times

[Agron Alibali]

Financial Times (London) 
January 7, 2002, Monday USA Edition 2 
COMPANIES & FINANCE INTERNATIONAL; Pg. 21 



Hellenic chief resigns as pressure mounts OIL AND PETROLEUM FORMER AGRICULTURE MINISTER TO TAKE OVER AS GROUP CONTINUES HUNT FOR FOREIGN STRATEGIC INVEST: 

By KERIN HOPE 

ATHENS 


Eleftherios Tzellas, chairman and chief executive of Hellenic Petroleum, the Greek oil refining group that is seeking a strategic investor from abroad, resigned at the weekend amid political pressure over his handling of the group's expansion in the Balkans. 

He was replaced as chairman by Giorgos Moraitis, a former agriculture minister and senior figure in the governing Socialist party, who was nominated for the job by Akis Tsochatzopoulos, development minister. The Greek state controls 67 per cent of Hellenic and appoints seven of the 11 board members. Mr Moraitis would serve as acting chief executive until the strategic investor takes over, a government adviser said. The government has already shortlisted Austria's OMV, Yukos of Russia and a joint venture between Russia's Lukoil and Greece's Latsis group, to acquire a 23 per cent stake in Hellenic and appoint senior managers. Firm offers are due next month. 

Hellenic wants to secure a bigger market share in the Balkan region, especially in distribution, and find opportunities for expansion in the natural gas market. The group holds a 35 per cent stake in Depa, Greece's state-owned gas importer. 

UBS Warburg and Eteva, the Greek investment bank, are advising the government. 

Cap Gemini Ernst & Young are advising Hellenic. 

Analysts said Mr Moraitis's move to Hellenic was a patronage appointment aimed at ensuring a smooth handover to an international partner. Mr Tzellas, who oversaw Hellenic's flotation on the Athens stock exchange, belongs to a rival faction in the Socialist party. 

Mr Tzellas also faces mounting criticism over Hellenic's previous moves to expand outside Greece. The group acquired a majority stake in Okta, Macedonia's only oil refinery, in a privatisation sale but has failed to make it profitable. 

A joint venture with a local partner to set up a nationwide chain of petrol stations in Albania also faces problems. 


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