Deutsche Bank Maintains Hold, $3.10 Target on CEDC
Deutsche Bank reiterates its Hold rating and $3.10 price target on the Central European Distribution Company (NASDAQ: CEDC) as Russian Standard is interested to buy more shares on the company.
Deutsche Bank says, “Having said "A" (buying 9.9% stake in CEDC), privately-held Russian Standard (RS) is now following with "B", proposing financing support in restructuring CEDC financial position (we'd expect refinancing of USD310 convertibles due Mar 2013 and trading at half of their face value)and extending credit lines by Russian Standard Bank. On the top of that RS has proposed cooperation in the Russian spirits market. And last, but not least RS expects CEDC to issue new shares to allow RS to increase its stake in the name (poison pill would have to stay unutilised).”
CEDC closed at $5.11 per share on Wednesday.
