STZ- It's been on my watch list for some time, but never re-entered. I've seen the companies new headquarter in Victor, beautiful building & location.
Constellation Jumps on Benefit From Modelo Deal
By Niamh Ring - Jun 25, 2012 11:24 AM ET
Constellation Brands Inc. (STZ), the world’s largest wine company, gained the most in almost a decade after an analyst said that a deal by Anheuser-Busch InBev NV (ABI) to acquire the rest of Grupo Modelo SAB would benefit the company.
Constellation advanced 13 percent to $21.91 at 11:20 a.m., after earlier rising 14 percent, the biggest intraday gain since June 27, 2002. That was after Timothy Ramey, an analyst with D.A. Davidson & Co., said the deal would be a “huge positive” for the wine company. Victor, New York-based Constellation, which had declined 6.3 percent this year through June 22, was the top performer in the Standard & Poor’s 500 Index.
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Constellation Brands Inc., the world's largest winemaker, bought Vincor International Inc. for C$1.27 billion ($1.09 billion) after sweetening its bid for the Canadian vintner. Photographer: Norm Betts/Bloomberg News
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“The market has been highly concerned that STZ will lose this business,” said Ramey, who has a buy rating on the shares.
Modelo said today that it is in strategic talks with AB InBev about a possible deal. AB InBev, the world’s biggest brewer, gained a non-controlling 50 percent stake in Modelo when InBev NV bought Bud Lite maker Anheuser-Busch Cos. in 2008 for $52 billion, the biggest brewing deal ever.
AB InBev, based in Leuven, Belgium, may buy the rest of Modelo for about $20 billion, according to a person with knowledge of the matter who declined to be identified because the matter is private.
AB InBev gained 2 percent to 56.75 euros in Brussels. Modelo rose 14 percent to 111.74 pesos in Mexico.
bloomberg.com |
