Bloomberg News

Mexico Stocks: Televisa, Genomma Lab Drop; Vitro Gains

February 22, 2012

(Corrects size and scope of Vitro share move in sixth paragraph.)

Feb. 21 (Bloomberg) -- The following companies had unusual price changes in Mexico trading. Stock symbols are in parentheses and prices are as of the close of trading.

The IPC index fell 1.1 percent to 37,859.48.

Genomma Lab Internacional SAB (LABB MM), the Mexican producer of over-the-counter drugs, dropped 9.4 percent to 26.10 pesos. Genomma Lab fell the most since August after saying it plans to acquire all shares of Prestige Brands Holdings Inc. for $16.60 per share, valuing the bid at $834 million, according to a filing today to the Mexican stock exchange. The stock is falling on concerns the purchase will increase debt, said Aldo Miranda, a trader at Intercam Casa de Bolsa SA.

Grupo Televisa SAB (TLEVICPO MM), the world’s largest Spanish-language broadcaster, fell 1.9 percent to 53.27 pesos. The positive impact on cable and telecom profit margins from lower interconnection rates in the second half of 2011 may be “partially offset shortly” as the company faces pressure to transfer part of the rate cut to clients, Gregorio Tomassi, an analyst at Banco Santander SA, said in an e-mailed report today.

Vitro SAB (VITROA MM), the Mexican glassmaker that defaulted on $1.5 billion of bonds in 2009, rose 8.4 percent to 17.34 pesos, the highest level on a closing basis since June 2008 as the company moves ahead with its restructuring plan. Vitro rose after some of the lawsuits the company faced “turned out positive,” Leon Cabrera, a trader at CI Casa de Bolsa, said by phone from Mexico City.

--Editors: Glenn J. Kalinoski, Jonathan Roeder

To contact the reporter on this story: Christine Jenkins in New York at cjenkins28@bloomberg.net;

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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