:. Food Industry News


Mexico's Modelo Shares Jump on Beer Takeover Talk

Source: Reuters
26/05/2008

Mexico City, May 23 - Shares of Mexico's No. 1 brewer Modelo jumped more than 5 percent Friday in what traders said was talk of a major consolidation in the global beer industry that could involve the maker of Corona.

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Stock of Modelo was up 5.41 percent to 55.15 pesos, swimming against the flow of the wider Mexican market, which was lower. Its local rival Femsa also rose, 3.66 percent to 48.10 pesos. Femsa's New York traded shares increased 3.76 percent to $46.33.

Credit Suisse reported this week that InBev, the giant created through Interbrew and AmBev, is working on a multi-billion dollar takeover of Anheuser Busch, which owns a 50 percent stake in Modelo.

Belgium-based InBev told Reuters on Friday it would not comment on a report on the Financial Times website that it is working on a $46 billion bid for Anheuser that would create the fifth-largest consumer products group in the world.



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