Forest City shares tumble after offering announced

* To issue up to 52.3 million shares

* Stock falls 17 percent

NEW YORK, May 14 (Reuters) - Shares Forest City Enterprises Inc (FCEa.N) fell 17 percent on Thursday after the property developer said it would raise cash by issuing more than 45 million shares.

The company said it would issue 45.5 million shares and an additional 6.8 million shares to cover over-allotments for a total of 52.3 million shares priced at $6.60 per share, A 12 percent discount to Wednesday's closing price of $7.51.

In late morning trade, Forest City shares were down 17.2 percent at $6.22, and were among the top percentage losers on the New York Stock Exchange.

The Cleveland, Ohio-based company said it expects gross proceeds from the offering to be $300.3 million or up to $345.3 million all the over-allotment shares are sold.

It intends to use net proceeds to reduce its borrowings under its $750 million revolving credit facility and for general corporate purposes, if there are left over funds.

"We believe the equity raise is part of a multi-step process to deleverage the balance sheet which may also include future dividend reductions and planned asset sales," Goldman Sachs analyst Jonathan Habermann wrote in a research note.