Coming under intense public pressure, Bulgaria 's government Tuesday said that by the end of the day it would revoke the electricity distribution license held by Czech 70% state-owned power company CEZ AS (BAACEZ.PR), a move the company says goes against European Union law.

"We consider the statement by the Bulgarian Prime Minister and [state] prosecutor as a gross breach of legal norms of Bulgaria as a member state of the European Union," CEZ's spokeswoman Barbora Pulpanova said in a statement.

CEZ denied any wrongdoing and said there is no legal ground for the step, adding that the move is likely politically motivated ahead of Bulgarian national elections set for this summer.

In recent weeks Bulgaria , the EU's poorest nation, has been going through a period of increased political turbulence with tens of thousands of people taking to the streets to protest about electricity prices.

The anti-government movement led to the downfall of the country's finance minister on Monday and is raising pressure on the government, which until recently had managed to retain its popularity despite an unpopular austerity drive.

Eleven people were injured in the Bulgarian capital Sofia on Monday in protests.

CEZ, which earns almost 10% of its revenue in Bulgaria and lifted prices in the country last year, said only the country's independent energy regulator has the authority to revoke a licence, and added that it has not received any information from the regulator.

The news follows CEZ losing its distribution license in Albania earlier this year. CEZ launched international arbitration against the Balkan country to seek an estimated EUR200 million in compensation.

Czech foreign minister Karel Schwarzenberg said he is ready to support CEZ by diplomatic means at the EU level, but added that it is primarily an issue for the company.

CEZ shares have been hit by the news, trading down 1.8% at 1130 GMT, well underperforming the broader market.

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