Rafako, which makes a wide range of boilers, disputes Tauron's claims for damages and fees, but is concerned they could impact its ability to conduct business operations and find an investor it is seeking, the company said in a statement.

Representatives of the two companies will meet on Monday, Tauron said later on Thursday, adding that it could consider suspending any further legal action if constructive talks began which could lead to reaching an agreement.

Shares in Rafako, which were down by as much as 46% on Thursday, closed 25% lower. Tauron's shares gained 3.4%.

($1 = 4.3620 zlotys)

(Reporting by Anna Koper; Editing by Alison Williams and Alexander Smith)