Cyprus-based Kappa Star says does not plan buyout bid for Croatia's Kras

Kappa Star, which is owned by Serbian businessman Nebojsa Saranovic, did not give further details in its statement filed with the Zagreb bourse at the end of Thursday's trading session.

Kras closed down 0.94% at 1,050 kuna on Thursday in a turnover of 11.4 million kuna ($1.7 million/1.5 million euro), the largest on the stock trading segment of the bourse for the day.

Heavy trading in Kras has been boosting the overall turnover on the Zagreb bourse since early September, as the company's share price soared to their current level of more than 1,000 kuna apiece from 400 kuna.

In the beginning of September, local meat producer Braca Pivac said it plans to launch a joint buyout bid for Kras with local company Kras-ESOP for the remaining stake of 50.82% in Kras the two firms do not own yet. Braca Pivac also said it will proceed with its buyout offer even if Kras-ESOP decides not to join.

Last week, Kappa Star said it has been buying heavily into Kras since the beginning of the month, surpassing on September 16 the legally prescribed threshold of 5% which requires a shareholder to inform the public about its identity and holdings.

According to September 27 bourse data, Kappa Star's stake in Kras has already risen to 17.35%, Braca Pivac holds 30.73% and Kras-ESOP controls 18.45%. The remainder belongs to smaller shareholders.

Kras-ESOP is expected to decide on September 30 whether to join Braca Pivac in the planned buyout bid for Kras.

(1 euro = 7.40661 kuna)