UPDATE 1-Campari $1.3 bln share, bond placement to fund Courvoisier deal

(Recasts with details, adds share price reaction)

ROME, Jan 10 (Reuters) - Italian spirits group Campari on Wednesday said it had raised 1.2 billion euros ($1.3 billion) by selling new shares as well as debt that can convert into equity to fund last month's buy of historic French cognac house Courvoisier.

Campari, which in December announced the $1.2 billion acquisition, said it had taken advantage of favourable market conditions as it joined a rush of issuance at the start of the year.

It sold new shares at 9.33 euros each, offering a 6% discount towards Tuesday's closing price and gathering orders through an accelerated bookbuilding procedure.

Shares in Campari failed to start trading as the Milan market opened on Wednesday and were indicated down 6.5% by 0802 GMT.

It also privately placed with investors senior debt which Campari can opt to repay, when it expires in January 2029, by handing investors shares in the company.

Campari set the conversion price for the 550 million euro bond at 12.3623 euros a share, representing a premium of 32.5% compared to the price at which it issued the new shares.

Each debt note converts into 8.09 shares. Campari said some of the investors in the bond had hedged their risks by short-selling other Campari shares.

The company will use proceeds from the fundraising for the

Courvoisier deal as well general corporate purposes, it said, while improving the group's capital structure by cutting debt and extending its average maturity.

The new shares account for 5.6% of Campari's capital while the bond, if converted, would account for another 3.6% of capital.

BofA Securities, Goldman Sachs, Crédit Agricole CIB, Intesa Sanpaolo and Mediobanca managed the transactions, Campari said.

($1 = 0.9152 euros) (Reporting by Valentina Za and Alvise Armellini, editing by Giulia Segreti and Louise Heavens)