STOCK MARKET WATCH -- Thursday, 21 February 2013

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31. UBS $76 Million Coke Bottler Trade Said Probed by Mexico

http://www.bloomberg.com/news/2013-02-21/ubs-76-million-coke-bottler-trade-said-probed-by-mexico.html

Mexican regulators are probing a $76 million trade UBS AG (UBSN) executed in Coca-Cola Femsa SAB (KOFL) shares hours before the bottler announced its biggest acquisition in 16 months, a person with direct knowledge of the matter said.

The Jan. 17 trade was the biggest in Mexico City-based Coca-Cola Femsa’s shares since August, equivalent to more than six times the stock’s average daily trading volume over the past year, according to data compiled by Bloomberg and the Mexican stock exchange. UBS, Switzerland’s largest bank, acted as the broker on the transaction, according to the exchange.

The trade took place at 8:30 a.m. local time, according to the data. After markets were closed for the day at about 9 p.m., Coca-Cola Femsa said in a regulatory filing it agreed to buy the Mexican drinkmaker Grupo Yoli SA in a deal valued at 8.81 billion pesos ($692 million). In trading the next day, Coca-Cola Femsa shares advanced 1.2 percent.

Mexico’s National Banking and Securities Commission is trying to uncover what motivated the transaction, according to the person, who asked not to be named because the investigation is still private. Neither Zurich-based UBS nor Coca-Cola Femsa has been accused of any wrongdoing, the person said.