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 Business News | March 2005 
Cemex 3rd Mexican Company in 2 Weeks to Split Stock
 Bloomberg
 Cemex SA, the world's No. 3 cement producer, plans a 2-for-1 split of its shares. Cemex is the third Mexican company in two weeks to announce plans to split stock after prices soared.
Monterrey-based Cemex will submit the plan for splitting "A" and "B" series shares for shareholder approval at a meeting April 28, the company said today in a statement to the Mexican stock exchange. Cemex's most-traded CPO shares represent two "A" shares and one "B" share.
Cemex joins America Movil SA, Latin America's biggest mobile phone company, and Telefonos de Mexico SA, Mexico's largest telephone company, in announcing plans in the past two weeks to split shares. The companies are three of the four largest on the Mexico City exchange, whose benchmark stock index has climbed more than 40 percent each of the past two years to a record March 7.
"After the big run we had in the past couple of years, they needed a split to make the shares more liquid," said Federico Rangel, who helps manage $1.1 billion of Mexican stocks and bonds at Operadora de Fondos Lloyd SA in Guadalajara, Mexico.
Jorge Perez, spokesman for Monterrey-based Cemex, declined to comment on the proposed split.
Mexico City-based America Movil said last week it would give shareholders three shares for every share held. Mexico City-based Telmex said it would offer two shares for each one share of the company. Wal-Mart de Mexico SA is the only of the four largest companies traded in Mexico City that hasn't announced a share split.
Cemex shares have climbed 33 percent in the past year, hitting a record 93.24 pesos on March 7. The shares fell 1.1 pesos, or 1.29 percent, to 84.15 pesos, a fifth day of declines. |
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