Cemex rises to highest in a month on agreement speculation

Cemex rises to highest in a month on agreement speculation
Published: 25 March 2009

Cemex rose to the highest in a month in Mexico City on speculation the company will reach an agreement with creditors to refinance US$14.5bn of debt, reports Bloomberg.

Cemex gained the most in the Bolsa index, rising nine per cent to 8.85 pesos at 3:14 p.m. New York time in Mexico City.

“There is speculation they’ll reach agreement with creditors,” delaying principal payments that are coming due, said Francisco Suarez , head of equity research at Actinver SA in Mexico City. The Mexican government may offer guarantees on the debt according to the talk, Suarez said.

Cemex announced in a March 9 statement it would seek to refinance US$14.5bn of loans with its bankers after calling off a proposed US$500m bond sale. Cemex said it “intends to meet all its obligations.”

There is speculation “they have extended the maturity, and they have three months to reach agreement on the US$14.5bn bank debt,” said Patricio Rivera , an analyst with Grupo Financiero IXE SA.