* Board opposes cash call and dividend
* Negative opinion for CEO
WARSAW, June 16 (Reuters) - The supervisory board of Poland's top bank PKO BP opposes the management's plans for a controversial cash call coupled with a $900 million dividend, the head of the board told Reuters on Tuesday.
PKO shares fell some 10 percent after the state-controlled bank said earlier this month it would seek to raise some 5 billion zlotys ($1.5 billion) in a share issue, while also planning to pay a dividend that will boost the state budget.
The stock rose 1 percent by 1239 GMT, while Warsaw's main index slipped 0.4 percent.
"We see the proposed combined transaction in which a capital increase is dependant on a payout of dividend worth 100 percent (of 2009 earnings) as a risky project that is detrimental to the bank," said Marzena Piszczek, the chair of PKO's supervisory board.
Ahead of an annual meeting later this month, the board also did not give a positive recommendation to Chief Executive Jerzy Pruski, a former deputy governor of the central bank who took over Poland's largest lender by assets a year ago.
"We are astonished, we don't know the justification for this opinion," Pruski told Reuters. "A decision will be made at the shareholders meeting on June 30."
Analysts speculate that the dispute between Pruski and the supervisory board is part of a wider political battle in which the finance minister is pushing for big dividends at state companies to plug a budget hole, clashing at times with his counterparts at the economy and treasury ministries.
The share issue has also been criticised by the central bank and the financial regulator, who worry the move could hurt its ability to keep open the credit spigot to help the slowing Polish economy.
Investors have grown increasingly impatient with the manner in which PKO has informed them of the plans.
"The way in which the bank is communicating with the market leaves a lot to be desired," said a London analyst who asked not to be named. "Poland's largest bank should not allow itself such a chaotic flow of information." (Reporting by Piotr Bujnicki and Chris Borowski; Editing by Rupert Winchester)