Alcohol distributor gives up on WSE floatation, still has acquisition plans

U.S. alcohol distribution company Central European Distribution Corporation (CEDC) has given up on its plans to float shares on the Warsaw Stock Exchange (WSE), but nevertheless intends to take over Polish companies from the sector. CEDC, which is already listed on Nasdaq, planned to raise $10-$15 million from its IPO in Poland and use the money for acquisitions. Now that CEDC has decided against going public on the WSE due to various legal obstacles, some competitors doubt whether it will be able to carry out its plans. CEDC's operating profits for the first nine months of 2000 reached $1.58 million, 35.7% less than in the respective period last year. However, Andrzej Strot, head of the supervisory board of Alkohol Holding, says that the deterioration of CEDC results are temporary and that consolidation of the alcohol distribution sector is a necessity. CEDC operates in Poland under the trade name Carey Agri. (Puls Biznesu, p.5)