WARSAW Poland AP One of Poland's best-known companies is under investigation for allegedly breaking stock exchange disclosure rules a regulatory commission spokeswoman said Tuesday. Elektrim SA an electrical engineering company that was one of the first members of the Warsaw Stock Exchange in 1992 last week revealed it agreed in 1996 to sell a stake in its cellular telephone holding for a nominal price by the middle of 1999. ``It's unacceptable'' that Elektrim waited so long to disclose the agreement said Beata Stelmach spokeswoman for the Security and Exchange Commission. Analysts said Elektrim's announcement of the deal effectively knocked off at least dlrs 120 million the lowest estimate for the true value of the stake being sold from the company's market value of dlrs 800 million. It also sent shock waves through Poland's financial community because of Elektrim's status as a solid Polish company and pillar of the stock exchange ``Elektrim was considered trustworthy'' said Piotr Kazimierski an analyst at the brokerage firm CAIB Securities. ``It was a favorite of foreign investors.'' The announcement rocked the Warsaw exchange with the all-share Warsaw Stock Index falling to 11532.0 points Tuesday from 12453.2 points before the disclosure last Thursday. Elektrim's stock value has plunged to 28.6 zloty dlrs 8.2 a share from the Thursday price of 39 zloty dlrs 11.2. Stelmach said an SEC investigation of the Elektrim agreement began Friday. If the SEC rules Elektrim violated disclosure regulations the case ``will qualify for consideration by the prosecutor's office'' she said. Penalties include a fine of up to 5 million zloty dlrs 1.44 million and imprisonment of up to five years. According to an Elektrim statement it agreed in 1996 to sell 6.5 percent of the cellular telephone company Polska Telefonia Cyfrowa to Kulczyk Holding for ``a little more'' than the nominal price. At the time Polska Telefonia Cyfrowa was just being set up and the nominal price of the 6.5 percent stake was 33 million zloty dlrs 12.8 million at the time according to Kazimierski the analyst. Since then the value of the cellphone company one of the first in Poland has soared. Now the 6.5 percent stake is believed to be worth anywhere from dlrs 120 million to dlrs 200 million. Kazimierski said 6.5 percent of PTC shares accounts for 18-20 percent of Elektrim's value. Elektrim owns a 34.1 percent stake in PTC which equals about 85 percent of Elektrim's value he said. Elektrim said it failed to realize how much the value of PTC shares would grow and how important its cellular telephone stake would be. It also said it had been trying to renegotiate the agreement's conditions with Kulczyk. bp-tsc APW19981201.1332.txt.body.html APW19981201.0410.txt.body.html