Zagreb - The 6.2 billion kuna (1.2 billion dollars) from the sale of an additional stake of the national oil company INA to the Hungarian MOL were transferred to the Croatian central bank, local reports said Friday.

With the purchase of additional 22 per cent in INA that were held by a war veterans' fund and small shareholders, MOL now holds 47.15 per cent of the firm's capital. The Croatian government holds 44 per cent and more small shareholders the remaining 8.85 per cent.

The Croatian government is currently negotiating a swap of 19 per cent of INA shares for MOL capital, which would allow the expanding Hungarian company a majority share in the Croatian firm.

MOL bought the first, 25-per cent stake in INA in 2003, with an eye on the large market spanning across the once Communist Eastern Europe.

The Budapest-based MOL has operations in Europe, the Middle East, Africa and the former Soviet Union as well as a network of filling stations in eastern Europe. INA has a market-capitalization about one third the size of MOL's and is focused on the Croatian market.

Over the past year, MOL has fought off a merger bid by Austrian rival OMV.

OMV bought 20.2 per cent of MOL last year as part of efforts to force a merger, then abandoned the bid in August saying the European Commission had rejected its proposals to prevent regional market concentration in retailing and refining. (dpa)