When similar strategies collide, sparks fly. Mol and OMV, the dominant Hungarian and Austrian energy operators, have each tried to forge a regional juggernaut from old state-owned oil companies. For OMV, the next step is taking over Mol. Having failed to make headway with the target's board, chief executive Wolfgang Ruttenstorfer is now taking his deal direct to Mol's shareholders.

The offer is generous. OMV wants to pay Ft32,000 per share in cash, or cash and shares - about a 20 per cent premium to Monday's closing price and a small improvement on an informal approach in June. But the structure looks more like a merger of equals than a takeover. The headquarters of the downstream business - the bulk of both companies - would be located in Budapest, while the companies would have equal representation on the new entity's supervisory board.