Central European Distribution Corp. (CEDC:US) rose in New York, paring its biggest slump in eight weeks, as the stock of Poland’s second-largest vodka producer faces delisting from the Nasdaq Global Select Market.
CEDC, as Warsaw-based company is known, rose 4.3 percent to $1.94 in New York at 3:44 p.m. in New York, rising for the first day this week. The stock has declined 19 percent since Jan. 7, when it received a letter from the Nasdaq indicating the exchange is initiating delisting of the stock starting tomorrow. Shares in Warsaw fell for a fourth day, dropping 4.3 percent to 6.05 zloty, or $1.96.
“Some people may think there’s a solution to the delisting, and also the stock has moved so far down that now any kind of movement is just amplified,” Jakub Krawczyk, an analyst at Raiffeisenbank Centrobank SA in Vienna, said by phone today.
Nasdaq said its seeks to delist the shares after CEDC failed to hold an annual general meeting in 2012. The vodka producer said it plans to appeal the decision and hold its general meeting “as soon as practicable,” according to a company filing.
CEDC erased (CEDC:US) half of its market value in 2012 amid slumping sales, increasing debt, and corporate governance transitions. After the company warned it might not be able to pay back its debt, CEDC signed an agreement on July 9 with billionaire Roustam Tariko’s Russian Standard Corp., making Tariko a non- executive chairman and allowing him to boost his stake in the company in return for buying debt to avoid default.
William Carey, the company’s former chief executive officer, resigned in July, and two months later the company’s stock was suspended in Warsaw (CDC) after it delayed the release of earnings.
“A listed company that has received a delisting determination letter from Nasdaq may appeal that determination by requesting a hearing,” according to the exchange’s website. Wayne Lee, a spokesman with the Nasdaq, said by e-mail today that the bourse doesn’t comment on specific companies.
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