Mexico stocks flat; Iusacell continues plummet
biz.yahoo.com
Reuters
Monday June 16, 12:21 pm ET
MEXICO CITY, June 16 (Reuters) - Mexican stocks traded
slightly higher in low volume on Monday, while struggling cell
phone company Iusacell continued to lose ground on news
that billionaire Ricardo Salinas plans to buy it.
The IPC benchmark stock
index (Mexico:^MXX -
News) was 0.14 percent
higher at 6994 points, with
over 18 million shares
exchanged.
"The market is
directionless, waiting for
some kind of significant
news to move it," a
Mexico City trader said.
Iusacell (Mexico:CELV.MX - News), which Salinas offered to
buy last Friday for the equivalent of 5.7 centavos per share,
fell 15.49 percent to 18 centavos.
The telecom's American Depositary Receipt, or ADR,
(NYSE:CEL - News) lost 7.54 percent to $1.84.
Broadcaster TV Azteca (Mexico:TVAZTCACPO.MX - News),
part of Salinas' business empire, added to a 3.33 percent loss
suffered when the deal was announced, easing another 2.21
percent to 3.98 pesos. Its ADR (NYSE:TZA - News) fell 1.93
percent to $6.10.
Salinas in the past has used TV Azteca to guarantee loans to
Unefon, a small mobile telephone company in which he is a
major shareholder. The guarantees have annoyed investors
who would prefer the magnate keep his investments separate.
Retailer Elektra (Mexico:ELEKTRA.MX - News), also owned
by Salinas, traded evenly, while its ADR (NYSE:EKT - News)
added 1 cent to $11.10.
Elektra CFO Rodrigo Pliego told Reuters the retailer would not
be making any investments in Iusacell.
The peso (MEX01) strengthened 7.0 centavos to 10.4750 per
dollar.
· |
