Dorothy, Dead thread but "kicking" stock!
Wednesday February 19 3:21 PM EST
Tribasa GTR.MX up on rumors of big contract
MONTERREY, Mexico, Feb 19 (Reuter) - Shares listed by Mexican construction company Grupo Tribasa SA de CV were up sharply in mid-afternoon trade on Wednesday on speculation the company may take part in civil engineering work for the Merida III thermoelectric plant, analysts said.
Tribasa's nominal shares were up 1.10 pesos to 25.10 pesos, while its ADRs ( Grupo Tribasa SA de CV ) shunned a slide in the Dow Jones to gain 1/4 to 6-1/2 on Wall Street.
Analysts said Tribasa may be sub-contracted by Grupo Hermes, which was awarded the contract to build the plant, as Hermes president Carlos Hank Rhon has close links to Tribasa.
"Links (between executives of both groups) exist, it would not sound far-fetched for Tribasa to be doing the civil engineering work, although I would not expect there to be a big contract," said Alvaro Shiraishi, an equity analyst with UBS Securities in New York.
The Mexican government awarded Hermes the contract to build Merida III at the end of January, along with U.S.-based AES Corp and Japanese company Nichimen Corp 8004.T .
Luis Antonio de Leon, from Valores Finamex in Mexico City, said that Tribasa not only might undertake civil engineering work on Merida III, but that might start as early as April.
Analysts said Tribasa may also have gained due to expectations that debt restructuring may be announced for highway concessions.
"The time is ripe for making a highway announcement, with so much good news around (about the Mexican economy). The agreement is there; it only needs to be finalized," said Rafael
Elias Linnero, at CS First Boston in New York. ((--Daniel Perez, Monterrey bureau +528 345-7617)) REUTER |