Grupo Modelo SAB (GMODELOC), the maker of Corona beer, headed for a record high amid optimism about rising profit and speculation that the world’s biggest brewer was seeking control of the company.
The stock rose 2.1 percent to 90.15 pesos at 11:12 a.m. Mexico City time. A close at that level would be the highest on record. The benchmark IPC index of 35 Mexican companies gained 0.3 percent.
Modelo’s stock is the second-best performer on the benchmark gauge since its Feb. 22 fourth-quarter report showed profit jumped 48 percent to 3.59 billion pesos ($283 million). Mexico City-based Modelo is also benefiting from optimism it will expand revenue abroad from Brazil to the U.S., said Mario Copca, an analyst with CI Casa de Bolsa in Mexico City.
“The company continues to be interested in increasing its market,” Copca said in a telephone interview. “That’s what you’re seeing incorporated in the price -- a good report and the expectation of greater expansion in South America, particularly Brazil.”
Alberto Aguilar, a columnist for Mexico City-based El Universal newspaper, said today there was renewed speculation that Leuven, Belgium-based Anheuser-Busch InBev NV (ABI), the world’s biggest beer maker, wants to take control of Modelo. He didn’t say where he got the information.
Jennifer Shelley, a spokeswoman for Modelo, declined to comment. Laura Vallis, a New York-based spokeswoman for AB InBev, declined to comment.
The report is also helping drive the stock, Copca said.
“Nothing is confirmed,” he said. “You should be cautious” basing investment decisions on that report.
InBev has a 50 percent, non-controlling stake in Modelo.
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