CEZ may announce MOL deal on Thursday -dep minister

...likely drag on into 2008, a senior official said on Monday.

Deputy Industry Minister Tomas Huenner, who is also vice-chairman of CEZ's supervisory board, told Reuters he expected the deal with MOL may be finalised in the coming days.

"Probably, they will be ready to announce major progress in both deals mentioned ... but I expect the negotiations on Mostecka (miner) not to be finalised this year," Huenner said.

CEZ said earlier on Monday it would announce "major progress in planned acquisition deals", without giving any further details.

CEZ has been in talks to take an up to 10 percent stake in MOL, worth about $1.56 billion, as the Hungarian company fights off a takeover approach by Austria's OMV . CEZ and MOL also plan joint venture to build power plants in Hungary and Slovakia.

CEZ has also been in talks to take over lignite miner Mostecka Uhelna from private holders, valuing the firm at about 28 billion crowns, according to Czech media.

An acquisition of Mostecka would secure long-term fuel supplies for CEZ's power plants in north-western Czech Republic.

A group of private investors Czech Coal owns 51 percent of Mostecka, the rest is owned by Czech businessman Pavel Tykac. (Reporting by Jan Korselt; Editing by Louise Ireland)

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Keywords: CZECH CEZ/ACQUISITIONS

[PRAGUE/Reuters/Finance.cz]