Credit Suisse Maintains Underperform on CEDC
Credit Suisse reiterates its Underperform rating on Central European Distribution Corp. (NASDAQ: CEDC) as possible consolidation following recent stake by Roustam Tariko does not present enough visibility going forward.
According to Credit Suisse, “We believe that Mr. Tariko is unlikely to consolidate the full company due to the large debt of CEDC (1.2 bl US$ of net debt) and the management's adoption of a “poison pill” plan. At the same time, there is a possibility that Mr Tariko might represent other parties interested in CEDC. … We believe that market could take it as a positive signal of some interest in CEDC as an acquisition target although the possibility of any M&A and the way that minority shareholders could be treated is unclear.”
CEDC closed up 29.12 percent at $4.39 on Tuesday.
