Modelo Plunges Most Since February 2007 in Mexico
Leuven, Belgium-based InBev has agreed to pay $52 billion for Anheuser-Busch, owner of a non-controlling 50 percent stake in Modelo. Although Mexico City-based Modelo is in talks with InBev about the stake, it doesn't appear to be making progress, Vector Casa de Bolsa analyst Carlos Hermosillo said.
``They haven't said anything about the talks, and that generates uncertainty for investors, which doesn't help at all,'' said Marco Reyes, an analyst at IXE Grupo Financiero in Mexico City, in a phone interview.
Modelo dropped 5.3 percent to 47.99 pesos in Mexico City trading. The shares also fell on concern declining consumer spending in Mexico and the U.S. will hurt financial results, Reyes said.
``The forecast for the year is very bad,'' he added.
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