CNNWF - Regal owner Cineworld tumbles 44% as C$1.2 billion court loss paints 'dire news'

UK-based cinema giant Cineworld is sliding in U.S. trading (OTCPK:CNNWF -38.7%, OTCPK:CNWGY -44.1%) after an Ontario court found the company repudiated its transaction to acquire Canada's Cineplex (CPXGF +9.9%) - a takeover attempt that broke down. That results in a damages award of C$1.24 billion. Cineplex stock has gained in kind. Cineworld is the world's second-largest cinema chain behind AMC; it's the owner of Regal Cinemas in the United States. The company plans to appeal the ruling. But it's "dire news" that has "the scope to wipe out all the remaining equity in the business," Berenberg says in reaction. Cineworld's market value is about $502 million in dollar terms; the judgment comes to about $960 million in damages. Cineworld's equity will likely become a "volatile option on the outcome of this trial for the foreseeable future," analyst Owen Shirley says. Jefferies agrees that Cineworld is in for negative price performance

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Regal owner Cineworld tumbles 44% as C$1.2 billion court loss paints 'dire news'