STOCKS NEWS EMERGING EUROPE-Cinema City at 7-week high on Cineworld deal

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0900GMT 10Jan2014 - Cinema City at 7-week high on Cineworld

deal

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Shares of Warsaw-listed Cinema City International (CCI)

movie theatre chain hit their 7-week high on Friday, as market

applauded the announced merger with Britain's largest cinema

operator Cineworld.

Cineworld said it would buy Cinema City's core business for

a combination of cash and stocks worth in total roughly 0.5

billion pounds ($823.2 million) to create Europe's second

largest cinema chain.

The agreed price is well above $503 million, which was the

market capitalisation of Cinema City at the Thursday's market

close in Warsaw. Its shares soared as much as 13 percent in

early Friday trade.

CCI, owner of approximately 100 cinemas in seven countries,

will hold 24.9 percent in the merged group and keep its real

estate business, whereas the current CEO of CCI Moshe Greidinger

will head the enlarged Cineworld group (LSE: CINE.L - news) .

($1 = 0.6074 British pounds)

(Reporting by Pawel Bernat)