WARSAW (Thomson Financial) - Polish construction company Pol-Aqua has called off a planned merger with local developer Polnord, (News) it said in a regulatory filing late on Monday following a disagreement over the deal's terms.

In April, Pol-Aqua announced plans to take over Polnord in a deal that would create the country's leading builder with $1.9 billion in market value.

But the merger hit a snag last week after Prokom Investment, an investment vehicle of billionaire Ryszard Krauze that controls Polnord, opposed plans by Pol-Aqua's owner Marek Stefanski to cut the agreed share swap parity.

Pol-Aqua had offered 1.45 of its shares for every Polnord share after buying a 20 percent stake in the company from Prokom Investment.

piotr.skolimowski@thomsonreuters.com +48 22 447 24 36

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