Rumor of buyout on message board, anyone know what's going on?
http://finance.yahoo.com/echarts?s=FMX#symbol=FMX;range=1d
http://finance.yahoo.com/echarts?s=FMX#symbol=FMX;range=1d
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FMX surge at close?
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Ok just found something...
Article says has become more formal and serious, if NM Rothschild & Sons is advising, that must be saying something.
NEW YORK, Oct 1 (Reuters) - Mexican brewer and bottler FEMSA has held talks with larger rivals like SABMiller Plc and Heineken about a possible merger of its beer operations that could be worth up to $9 billion, the Wall Street Journal reported on Thursday.
Citing people familiar with the matter, the Journal said FEMSA is being advised by NM Rothschild & Sons Ltd and that talks have recently become more formal and serious.
FEMSA's New York-traded shares surged 11 percent on reports of the deal talks.
FEMSA said it had no comment on the report. Officials at SABMiller and Heineken were not immediately available.
from...
http://www.reuters.com/article/marketsNews/idCNN0128845620091001?rpc=44
Article says has become more formal and serious, if NM Rothschild & Sons is advising, that must be saying something.
JPM says 19% more upside from close
"There may be further upside to the stock. Our Dec '10 price target for FMX of $44 is based on a 7x Cerveza EBITDA. If
instead we replace it with the multiple implied in the $9B, the price target for FMX moves up to $53. FMX closed today
at $44.40. If the figure mentioned in the WSJ materializes, there is another 19% potential upside to the stock.
⢠A final price may go higher than $9B? Some may argue that as one of the last large independent brewers in a very
profitable market, Cerveza may command a higher multiple than 10.4x-12.5x. But the counter argument is that Cerveza
may soon have to compete against a leaner Grupo Modelo, if this is ever controlled by Anheuser-Busch InBev, already its
largest shareholder. So the possible timing (now) and price ($9B) for selling its beer business may turn out to be right."
The division they are selling off was reported to generate around 6 percent versus the one they are investing in that generates around 30 percent growth. So they are not only strategically better positioning themselves, they are investing in their most profitable division with the cash brought in.