According to insider sources, the Mexican regulators have started to probe the $76 million trade that UBS executed in Coca-Cola Femsa SAB shares. This marked the biggest acquisition of the bottler in last 16 months and the trade was finalized on 17th January. The largest bank of Switzerland, UBS acted as the broker of this transaction. Incidentally, after the trade was finalized, the shares of Coca-Cola Femsa went ahead by 1.2% on the very next day.
The National Banking and Securities Commission of Mexico is now trying to unveil the reason behind this transaction. The investigation is still private though and neither Coca-Cola Femsa nor UBS has been accused of any illegal activities so far. Incidentally, according to the regulatory filing made by Coca-Cola Femsa, it bought the Mexican drink maker Grupo Yoli SA.
When the spokeswoman of Coca-Cola Femsa, Carolina Alvear was asked about this matter, she stated that she does not have any information on any sort of problem. She even added that the 17th January trade was completely independent from the company. A press official for the National Banking and Securities Commission of Mexico, Aurelio Bueno also refused to make any comment on this matter, so as the spokeswoman of UBS, Megan Stinson.
The Mexican Stock Exchange’s Chief Executive Officer, Luis Tellez, incidentally, on 13th February stated that this specific transaction has exceeded certain parameters. These parameters help the bourse to mark a transaction to be regular or suspicious. The irregularities were identified by the market surveillance unit of the bourse. Tellez added further that the bourse has passed all the necessary information and documents already to the regulators, for proper inspection purpose.
The transaction was executed for a total of 5.08 million shares by the Mexican Brokerage Unit of UBS. However, in the data, it is not clearly defined whether the trade was completed for the clients or right on the behalf of the banks. As far as the data is concerned, the shares changed hands at a price of 190.48 Pesos per share, 4% less than the closing price of the last day before the trade execution.
In 2013, Coca-Cola Femsa, so far has advanced ahead by 7.4%, however, today, as the news of this possible probe surfaced, it declined by 0.5%. Each of its shares is currently priced at 205.54 Pesos.