Poland eyes merger of troubled builders - paper

WARSAW, Oct 9 (Reuters) - Wieslaw Rozacki, chief executiveof troubled Polish builder PBG , on Tuesday signalled abig tie-up in the local construction sector could be a way tosave his company.

"We are right now talking about several vital entities forthe Polish economy," the CEO told daily Dziennik Gazeta Prawna,without going into much detail.

Rozacki added that state development agency ARP should beinvolved in the project, but declined to comment if it wouldalso include PBG's beleaguered rival Polimex , in whichARP is to buy a stake of up to 33 percent.

Earlier this year, sources told Reuters PBG and Polimex,which run similar construction portfolios, might eventuallymerge to avoid bankruptcy.

PBG has been in bankruptcy protection since June, whilePolimex is struggling to keep afloat with plans to spin offnon-core units and secure a debt restructuring deal, as well asshareholder acceptance for a share issue.

(Reporting by Adrian Krajewski; Editing by Mark Potter)

((adrian.krajewski@thomsonreuters.com)(+48 22 653 9709)(Reuters Messaging:adrian.krajewski.thomsonreuters.com@reuters.net))