Central European Distribution Falls on Note Sale
Central European Distribution Corp. (CEDC), the Polish spirits company, fell the most in 19 months in Nasdaq trading after the company said it will offer about $310 million in convertible notes for sale.
Central European lost $5.74, or 9.9 percent, to $52.44 as of 4 p.m. New York time in Nasdaq Stock Market composite trading for the biggest decline since August 2006.
Some of the proceeds from the sale will be used to fund Central European's proposed stake in Russian spirits company Whitehall Group, according to a U.S. regulatory filing today. The notes are due in 2013, Central European said. JPMorgan Chase & Co. will manage the offering.
Central European is expanding from Eastern Europe into Russia, where Whitehall distributes wines and other alcoholic drinks. The company proposed acquiring a 49.9 percent voting stake and 75 percent economic interest in Whitehall in the form of cash, debt and shares in a Feb. 26 statement.
Shares of Central European, based in Bala Cynwyd, Pennsylvania, have lost 9.7 percent this year.
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