Boston, MA 04/29/2014 (wallstreetpr) – Central European Media Enterprises Ltd. (NASDAQ:CETV) surged the highest this month as businessmen consider acquisition with Time Warner Inc (NYSE:TWX).
Potential Acquisition
Three businessmen based out of Czech are in talks with Time Warner, the majority shareholder, for a takeover of Central European Media Enterprises Ltd. (NASDAQ:CETV). As reported by a newspaper, one of the businessmen is billionaire Petr Kellner. Shares of the company surged to as high as 12% and jumped to reach 55.9 koruna in early hours of trading in Prague after the newspaper report. This has been the highest gain for the company since March. Also, CME’s trading volume increased by over twice its three month daily aggregate.
Czech newspaper Dnes reported that representatives of businessmen- Kellner, Jan Dienstl and Pavel Tykac have held various meetings with Time Warner. The three seek to jointly acquire CME, which has been unprofitable for some time. According to Bloomberg, the company had recorded a net loss of as much as $278 million last year. The data further stated that it was for a third consecutive year. The newspaper also cited two people familiar with the matter, but declined to be named.
Mere Speculations
Kellner’s investment company, PPF Group NV, however, declined being in talks of purchasing CME via an e-mail. It also denied considering buying CME’s flagship Czech television station Nova. In this context, a Prague based J&T Banka AS analysts said that the newspaper article could lead to a short lived surge in the media and entertainment company’s stock. In his e-mail, he also said that similar speculations concerning financial groups’ interest in TV Nova had been seen earlier also.
On April 25, CME had announced the expiration of the subscription tenure for its completely backstopped $341.8 million rights offerings. The company forecasts to announce the outcome of the rights offerings by Friday, May 2, 2014.
