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Comerci Rises to Two-Year High on Acquisition Outlook

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Jan. 3 (Bloomberg) -- Controladora Comercial Mexicana SAB surged to the highest price since its October 2008 default after a debt restructuring deal bolstered speculation the company may be acquired or merge with a competitor.

The supermarket chain’s shares jumped 7.2 percent to 16.21 pesos at 4 p.m. New York time in Mexico City trading. In the past two trading sessions, the shares are up 12 percent.

Comerci, as the company is known, has gained every week since announcing on Nov. 25 that a Mexico City judge approved its restructuring agreement. The deal may allow the company to explore options to propel growth, said Gerardo Copca, an analyst at Mexico City-based Metanalisis.

“As a result of the restructuring, the company can move on to other options,” Copca said in a telephone interview. “The best thing for them would be to integrate themselves with someone that has more capital in order to take advantage of all the infrastructure they have and continue growing.”

The shares rose because of market conditions, Comerci said today in a statement to Mexico’s stock exchange, without providing any other details.

Jose Calvillo, head of administration and finance for Comerci, wasn’t available for comment when contacted by Bloomberg News. Horacio Loyo, an independent public relations spokesman for the company, said he couldn’t immediately comment.

Comerci trades at 6.9 times reported earnings after the ratio fell to 4.7 percent in October, the lowest since at least 1997, according to weekly data compiled by Bloomberg.

The company’s relative strength index climbed to 88.5, the highest level since April 2009. A reading over 70 can indicate that a stock is rising too quickly and becoming overbought.

The benchmark IPC index gained for a sixth day, advancing 0.1 percent to a record 38,605.80

To contact the reporter on this story: Jonathan J. Levin in Mexico City at jlevin20@bloomberg.net.

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

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