CEZ considers sale of power plants to Czech Coal - paper

PRAGUE Jan 31 (Reuters) - Czech power group CEZ has renewed talks with Czech Coal over supplies and is also considering selling its Pocerady and Chvaletice electricity plants, newspaper Hospodarske Noviny reported on Tuesday.

The two companies have been in a five-year legal battle over long-term coal supplies, and supplies for CEZ's Pocerady plant are set to run out this year, creating pressure for a deal, daily Hospodarske Noviny said.

A source told the paper that as well as talks about sale of Pocerady, Chvaletice has also become part of the negotiations.

"In December, new CEZ boss Daniel Benes met with (Czech Coal owner Pavel) Tykac and negotiations were launched. The new motive is Chvaletice," the source was quoted as saying.

The paper said sources close to Benes and Czech Coal confirmed the negotiations over Chvaletice.

Czech Coal spokeswoman Gabriela Sarickova Benesova confirmed negotiations between the companies were taking place.

CEZ spokeswoman Eva Novakova declined to comment. (Reporting by Jason Hovet; Editing by Dan Lalor)