--IPC stock index up 0.1% in early trade
--Modelo shares suspended on report company is to be sold
--Cemex shares surge on talks with creditors
By Amy Guthrie
MEXICO CITY--Mexican stocks were higher early Monday as
spectacular gains in brewer Grupo Modelo SAB (GPMCY,
GMODELO.MX)--on a report that Anheuser-Busch InBev (BUD, ABI.BT) is
close to taking control of the company--led the local bourse to
suspend trade in Modelo shares.
The IPC index of Mexico's most-traded shares was up 35 points,
or 0.1%, to 39107 points in recent trade on volume of 36 million
shares worth 855 million pesos ($61 million).
The peso, meanwhile, was weaker against the U.S. dollar at
13.9495 compared with MXN13.8440 at the close Friday, as investors
look anxiously to a European Union summit this week and took a
skeptical view of a Spanish request for EU aid.
In the Mexican stock market, brewer Modelo shot 9.8% higher to
MXN107.51 in active trade in the early minutes of the session. The
Mexican Stock Exchange suspended trade in the shares at 9:44 a.m.
ET, saying Modelo must make a statement regarding possible relevant
events before the shares can be freed for trade again.
The Wall Street Journal cited people familiar with the matter in
reporting that Anheuser-Busch InBev, which already owns a 50%
noncontrolling stake in Modelo, is close to clinching a deal for
control of the Mexican brewer. If it reaches fruition, the deal is
estimated to be worth more than $12 billion, and the agreement
would end a contentious history between the two brewers.
Among other gainers, cement maker Cemex SAB (CX, CEMEX.MX) was
surging 4.7% to MXN8.29 after the company said it is in talks with
creditors to refinance its heavy 2014 debt payment schedule with a
proposal to extend the maturities by three years.
Cemex has around $7 billion in bank debt coming due in 2014
under a $15 billion financing agreement reached in 2009 at the
height of the global-financial crisis, when sharp declines in the
company's earnings made its debt load unmanageable.
Several other Mexican blue chips were under pressure in early
trade, given worries about the global economy. Wireless carrier
America Movil SAB (AMOV, AMX.MX) was off 0.2% to MXN17.41, copper
miner Grupo Mexico SAB (GMEXICO.MX) was falling 2.2% to MXN38.15
and retailer Wal-Mart de Mexico SAB (WALMEX.MX) was down 0.4% to
MXN35.13.
Write to Amy Guthrie at amy.guthrie@dowjones.com.