UPDATE 1-Czech Agrofert seeks $774 mln in new PKN suit

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PRAGUE, Oct 20 (Reuters) - Czech chemicals group Agrofert said on Friday it had filed a legal suit against Poland's PKN Orlen <PKNA.WA> seeking damages of 17.35 billion crowns ($774.4 million).

Agrofert said the claim, filed with an arbitration court, was related to the two firms' failed 2004 cooperation deal in the privatisation of Czech oil and chemicals group Unipetrol <UNPEsp.PR>.

Agrofert had agreed with PKN to buy some Unipetrol assets if PKN bought Unipetrol. PKN took over the Czech firm but did not sell the assets to Agrofert, challenging the contracts and the agreed terms.

"PKN Orlen did not fulfil its commitments, and therefore Agrofert is seeking the upholding of its rights through arbitration," Agrofert said in a statement.

Agrofert, owned by entrepreneur Andrej Babis, is a large player on the Czech chemicals market.

Under the terms of its joint approach to the Unipetrol privatisation, PKN was to sell various stakes in its Kaucuk, Chemopetrol, Aliachem and Agrobohemie units to Agrofert.

Agrofert had agreed to buy the assets for 103 million euros, while PKN later estimated their value at 350 million.

Together with other pending suits, Agrofert said it was seeking a total of 22.13 billion crowns from PKN.

Unipetrol has meanwhile been negotiating to sell the synthetic rubber unit Kaucuk to Poland's Dwory.

PKN shares traded 0.7 percent weaker on the day at 48.10 zlotys at 1300 GMT, down from 48.40 ahead of the news. Unipetrol traded 0.8 percent up on the day at 202.90 crowns.

There was no immediate comment from PKN Orlen. ((Reporting by Jan Lopatka, editing by Quentin Bryar/David Cowell; prague.newsroom@reuters.com; Reuters Messaging: jan.lopatka.reuters.com@reuters.net; +420-224 190 474))

( $1=22.47 Czech Crown)

Keywords: CHEMICALS CZECH UNIPETROL