UPDATE 1-Czech Orco raises 7 mln euros in 2nd capital hike

                                
 * Equity boost seen as protection against takeover
                                
 * Co in talks over another capital hike
                                
  
  (Adds background, quote)
                                
 PRAGUE, April 12 (Reuters) - Orco Property Group raised 7.1
million euros ($9.5 million) in a second capital hike, placing
new shares at a major discount from a traded price, fuelling
speculation the hike was an attempt to ward off predators.
                                
 The debt-saddled developer placed the shares with private
investors for 5.00 euros each, only about two-thirds of the
price on the Prague stock exchange.
                                
 The hike comes after a 6.1 million euros capital increase
announced on April 8.
                                
 Analysts said the capital boost is a way for the management
to protect the indebted real estate developer of properties in
central and eastern Europe from a takeover by a group of
shareholders.
                                
 "It is a significant 33 percent discount from the Friday's
closing price. The amount is not sufficient for resolution of
the company's indebtedness while the dilution of the present
shareholders is significant," said Petr Bartek, an equity
analysts at bank Ceska Sporitelna.
                                
 Shareholders controlling over 10 percent of Orco, including
Luxembourg-registered Millenius Investments which holds 7.74
percent, in March called for a general meeting to dismiss
chairman and chief executive Jean-Francois Ott, who founded the
developer in the 1990s. [ID:nLDE62O0AN]
                                
 Orco extended its year-old court protection from creditors
to June 25 while it tries to restructure 411 million euros in
debt held by bondholders who rejected past attempts to revamp
the debt.
                                
 Its new restructuring plan, subject to a court approval,
looks to extend the average maturity of the bonds to eight years
from three at present.
                                
 The company's overall liabilities ended last year at 1.97
billion euros, slightly lower than the 2.04 billion at the end
of 2008. [ID:nLDE62A0AR]
                                
 The second capital hike shows "confirmation of the
confidence that a certain number of investors have in the
restructuring plan of the company and in the company's future
developments", Orco said in a statement.
                                
 The developer continues to negotiate with other potential
investors on some further capital increase, the statement added.
                                
 Orco's full-year net loss fell to 251 million euros from 391
million in 2008, on revenue down a sixth to 252 million as the
economic slowdown hit sales and property values.
                                
 Orco shares were up 0.2 percent to 192 Czech crowns ($10.20)
at 0818 GMT in Prague, while the main PX index <.PX> was up by
0.83 percent.
  (Reporting by Jana Mlcochova; Editing by David Holmes, Mike
Nesbit)
  ($1=.7477 euros)
  ($1=18.83 Czech Crown)