[CEL bounces back on restructuring news]
Monday March 26, 11:45 am Eastern Time
Mexico's Iusacell shares bounce back on restructuring news
MEXICO CITY, March 26 (Reuters) - Mexico's second biggest
wireless telephone company, Grupo Iusacell (NYSE:CEL - news),
rallied in early Monday trade on news of an internal
restructuring and a rebound from last week's heavy losses,
traders said.
``News of restructuring is positive and is helping the
stock,'' said a local trader.
After markets closed on Friday, Iusacell said it was
restructuring its retail section into three departments that
will report directly to the president, and that Chief
Operation Officer Rolando Stevens was stepping down.
On the Mexican stock exchange early Monday, Iusacell was up
nearly 6 percent to 7.95 pesos per share, on volume of
232,200 shares.
On the New York Stock Exchange, Iusacell's American
Depositary Receipts (ADRs), gained 3.3 percent to $8.21.
Iusacell shares lost 17 percent last week, closing at 7.60
pesos per share on Friday on the Mexican stock exchange,
compared with 9.13 pesos a week earlier.
Deutsche Banc financial analyst Ronald Aitken initiated
coverage of Iusacell last Thursday with a market perform
rating. In a research note, Aitken said that intensifying
competition in the Mexican wireless market and unattractive
valuation comparisons were the reasons he was taking a
cautious stance on the stock. |
