Central European Media Drops to Record on Pricing: Prague Mover
Central European Media Enterprises Ltd. (CETV), the broadcaster co-owned by Time Warner Inc., slumped the most in 4 1/2 years after pricing a share offering at a discount.
The stock retreated 19 percent, the most since November 2008, to 55.35 koruna by close in Prague, the biggest drop since November 2008 and the lowest level since the stock cross-listed on the Czech bourse in 2005. Traded volume was 14-times the three-month daily average. The stock was down 15 percent to $2.685 as of 12 p.m. in New York, its home market.
CME, as the company is known, has slumped 36 percent in Prague since announcing plans on April 29 to raise as much as $174 million through a public offering. CME has priced 54.4 million of its Class A common shares at $2.75 apiece, the Bermuda-registered company said in a regulatory filing today. The pricing was 13 percent less than yesterday’s closing price in New York.
“They failed to reach the target of $174 million, which is clearly negative,” Pavel Ryska, an analyst at J&T Banka AS in Prague, said in an e-mail to Bloomberg News.
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