Reuters: Global Markets: Constellation shares jump on Modelo deal talk

Reuters: Global Markets Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Constellation shares jump on Modelo deal talk Jun 25th 2012, 16:59 Mon Jun 25, 2012 12:59pm EDT (Reuters) - Constellation Brands Inc (STZ.N) shares jumped 13 percent on Monday on news that Anheuser Busch InBev (ABI.BR) may acquire the half of Grupo Modelo (GMODELOC.MX) that it does not own. Following news on Sunday that AB InBev was in talks to buy out Modelo, some investors may be guessing that the world's largest brewer would also buy out Constellation's stake in the Crown Imports joint venture with Modelo, said Stifel Nicolaus analyst Mark Swartzberg. "Sunday's news could trigger speculation favorable to trading in shares of Constellation," Swartzberg said. "Speculation of Modelo notifying Constellation that it is buying Constellation's 50 percent stake in their U.S. joint venture." Constellation and Modelo declined to comment on the venture. Modelo and AB InBev confirmed on Monday that they were in talks to expand their existing relationship. Constellation shares were the biggest gainers on the New York Stock Exchange in early afternoon trading, rising $2.48, or 12.8 percent, to $21.85.

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions