Mann Denies Rumor of Abramovich Buyout

Roman Abramovich will not buy Central European Distribution Corp. (NASDAQ: CEDC). This news comes from John Mann, one of Abramovich's spokesmen.

Benzinga reported yesterday that there was a rumor that the Russian billionaire was attempting to acquire the vodka manufacturer.

In a telephone interview with Benzinga Wednesday morning, Mann strongly denied that Abramovich was planning to purchase the company. Bloomberg also reported Mann's denial of the deal. Mann stated that Vodka manufacturing was not a core business idea for Abramovich.

"I will bet you money that the rumors were started by people who owned the stock and were looking to sell it," Mann explained.

Following the release of the rumor, shares of CEDC jumped from $11.59 to $11.96 in a matter of minutes. The stock ultimately closed at $11.81, up $0.15 on the day.

While Abramovich may not be well-known in the United States, his name carries weight in Europe, where his ownership of the Chelsea Football Club gives him immense notoriety.

Mann stated that in Europe, rumors of Abramovich's purchases spread like wildfire even though "99%" of the rumors turn out to be false. Mann explained that the rumors about Abramovich typically involve pieces of real estate, as brokers push the idea that Abramovich is interested in a piece in order to obtain an advantageous price.