UPDATE 1-CEDC shares up 40 pct as investor picks big stake

Mon Aug 29, 2011 2:16pm EDT

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Aug 29 (Reuters) - Shares of Central European Distribution Corp rose as much as 40 percent after private investor Mark Kaufman reported a 9.6 percent stake in the Polish vodka maker.

Kaufman may engage in talks with CEDC's management and board concerning the company's business, financial condition and strategy, among other things, he said in a filing with the Securities and Exchange Commission.

The stake purchase values Kaufman's holding at $39.1 million based on the stock's current price.

Kaufman is a business consultant for the wines and spirits industry and was the chief executive of the Whitehall Group, an importer and distributor of wines and spirits in Russia, according to the filing.

Earlier this month, CEDC cut its full-year profit outlook blaming additional costs due to new regulations in its key Russian market. [ID: nL3E7J44MK]

Shares of the company, which makes Absolwent and Parliament vodka and gets about 65 percent of its revenue from Russia, were trading up 33 percent at $7.28 on Monday on Nasdaq. (Reporting by Chris Jonathan Peters in Bangalore; Editing by Saumyadeb Chakrabarty)