Agrofert assets assault

The chemical group's demand follows a row over assets of Czech oil group Unipetrol, which PKN Orlen bought from the Czech government earlier this year.

Agrofert boss Andrej Babis said that the Polish refiner and fuels concern had rejected the claim, but declined to comment on possible further steps by Agrofert.

"We are surprised that PKN Orlen ... ignores our contracts," Babis said.

PKN spokesman Dawid Piekarz said: "I can neither confirm nor deny this, as our agreement with Agrofert is covered by a confidentiality clause."

The dispute arose after Orlen agreed to sell some assets from Unipetrol to Agrofert. The assets in question include downstream chemicals firms Chemopetrol, Kaucuk and Spolana.

PKN Orlen has since said the deal, agreed by previous management of the Polish state-controlled company, was unfavorable and the sale has not gone through.

PKN created provisions worth nearly $115 (zł.365) million for the second quarter, saying they were mostly against losses connected with the deal with Agrofert.

PKN took a 63 percent stake in Unipetrol for $558.2 (zł.1,773) million earlier this year.

Czech Finance Minister Bohuslav Sobotka said he expected the price to rise by 15 percent following a new audit, in line with a price adjustment mechanism set in the privatization contract. (Reuters)