Grupo Televisa SAB (TLEVICPO), the world’s largest Spanish-language broadcaster, advanced for a second day on speculation the nation’s antitrust commission will overturn a January decision blocking an acquisition.
The shares gained 1.3 percent to 54.93 pesos at 2:22 p.m. in Mexico City trading, pushing the two-day advance to 2.9 percent. A close at that level would mark the biggest two-day rally since the period ended April 30. The benchmark IPC Index (MEXBOL) of 35 Mexican companies fell 0.4 percent today.
Mexico’s antitrust commission voted June 6 on Televisa’s appeal of a January decision blocking the company’s acquisition of a 50 percent stake in Grupo Iusacell SA. The decision hasn’t been made public. Traders are buying the stock again on optimism the ruling will be reversed, said Manuel Jimenez, an analyst with Banorte Ixe Casa de Bolsa who recommends buying the shares.
“The Cofeco’s decision is going to be favorable,” Jimenez said in a telephone interview from Mexico City. “They should approve it with some conditions.”
The botched acquisition has been a drag on the stock because Televisa had already purchased convertible Iusacell bonds at the time when the agency, known as Cofeco, rejected the stake purchase.
The $1.6 billion transaction must be modified to address “grave risks” to competition, the antitrust agency said in Feb. 7 a statement explaining its decision to reject the deal.
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