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Rafako Engineering Extends Losses as Alstom Takes Legal Action

Rafako SA, the power engineering unit of Poland’s third-largest builder PBG SA, headed for the lowest in more than a week after saying Alstom Power Systems GmbH filed a suit against it in a German court.

The shares lost 0.4 percent to 7.8 zloty, the lowest on a closing basis since May 18, as of 9:12 a.m. in Warsaw trading.

The unit of France’s Alstom SA seeks 28.7 million euros ($36 million) from its subcontractor for damages related to work on a German power plant, Rafako said in a regulatory statement yesterday. The Polish company said the lawsuit is groundless and should be rejected in full.

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