Asarco, the copper mining unit of Grupo Mexico (GMBXF.NOO), Wednesday filed for bankruptcy protection after a five week strike that hampered production. The company also faces environmental and other claims worth $1.9 billion.
Asarco filed for Chapter 11 protection in the US Bankruptcy Court in Corpus Christi, Texas, although its operations are headquartered in Tucson. Asarco is facing a large number of asbestos related personal injury claims besides several environmental lawsuits related to its mining, smelting and refining operations. The company expects the Chapter 11 filing to enable it to reorganize its liabilities, reduce operational costs and restructure its balance sheet. The workers at Asarco’s Southern Arizona and Texas facilities have been on strike since early July due to a disagreement with the management over their wages, pensions and medical benefits.
More: newratings.com
Grupo Mexico official says Asarco strike settlement possible
Officials from Mexican copper mining concern Grupo Mexico SA were meeting with union representatives Friday to try to resolve a three-week-old U.S. strike at the company's Asarco unit, an official said Friday.
In a conference call with analysts to discuss Grupo Mexico's second-quarter results, chief financial officer Eduardo Gonzalez said he believed a solution to the strike was possible.
Friday's meeting was the first between management and the union since more than 1,500 workers went on strike in Arizona and Texas to protest the company's proposed wage freeze and reductions in health and pension
Six years after buying U.S. copper giant Asarco and its prized Peruvian assets, Grupo Mexico might opt to sever links with its U.S. unit and end fights with its feisty union.
With all 1,500 unionized workers at Asarco on strike alleging "bad faith" contract negotiations by the company and both sides not even in talks, analysts say Grupo Mexico could turn its back on its troubled U.S. operations.
The Mexicans have openly said they are considering asset sales at Asarco, which Grupo Mexico bought for more than $2 billion in 1999, an acquisition that almost sank the company when copper prices then
Copper Reaches a Record as Grupo Mexico Fails to End Strike
Copper reached a record high in London as Asarco LLC, responsible for about 1 percent of world copper supply, failed to end a strike at mines, refineries and smelters in Arizona and Texas now entering its seventh week.
Asarco, the U.S. copper-mining unit of Grupo Mexico SA, and the United Steelworkers of America made no progress on ending the strike at mines in Arizona and a Texas smelter and no new talks are scheduled, said Pete Cinquemani, commissioner of the Federal Mediation & Conciliation Service, on Aug. 13.
Copper for
Grupo Mexico, Acindar, CPFL, Grendene: Latin Equity Preview
The following stocks may make significant gains or losses in Latin America today. Symbols are in parentheses after the company name and stock prices are from the last session.
Mexico
Grupo Mexico SA (GMEXICOB MM): Asarco LLC, the U.S. mining unit of Grupo Mexico SA, said it will hire hourly employees to replace union workers after talks failed to end a 10-week strike at copper mines and plants in Arizona and Texas. Grupo Mexico shares fell 34 centavos, or 1.8 percent, to 19.01 pesos.
Vitro SA (VITROA MM): Rising international natural gas prices
Mexicos Carso seeks to delist Sanborns retail unit
Mexican conglomerate Grupo Carso said on Monday it would ask shareholders to make an offer to buy up to 100 percent of outstanding shares in retail unit Grupo Sanborns and delist the company from Mexicos stock market.
Carso (GCARSOA1.MX: Quote, Profile, Research), an industrial and retail conglomerate that belongs to the business empire of Latin Americas richest man, Carlos Slim, said it would offer to pay 26 pesos per share it does not currently own in Sanborns (GSANBORB1.MX: Quote, Profile, Research), for an estimated total cost of 4.1 billion pesos ($376 million).
Source : today.reuters.com
Delta could grow more in Brazil, Mexico
Even as Delta Air Lines Inc. struggles with its own bankruptcy, the airline could capitalize on the financial troubles of two international competitors: Mexicos AeroMéxico and Brazils Varig.
AeroMéxico, Mexicos biggest airline -- which is for sale -- has been reducing flights to some U.S. cities.
And Brazils largest carrier, the bankrupt Varig, made headlines recently by running out of operating cash, canceling hundreds of flights, and threatening to strand about 5,000 customers at the World Cup soccer competition in Germany -- including, some worried, Brazils national soccer team.
Enter Delta (OTC: DALRQ), which
BASE METALS UPDATE: Grupo Mexico: Cananea Talks Going Well
Workers at La Cananea, a copper mine located in northern Sonora state, said Tuesday that talks were advancing well with parent company Grupo Mexico SA (GMEXICO.MX) over annual contract revisions.
Union Committee Plans To Discuss Asarco Offer Wednesday
The union bargaining committee representing workers striking against Asarco Inc. (ASX.XX) is planning to meet Wednesday to discuss a one-year contract offer that has been made by the company, as well as other issues, a union official reported Tuesday morning.
Mexico Steel Talks End Without Deal, No Strikes Seen Tue
Globalia teams up with Mexico's Grupo Angeles for local airlines bid
Spain's Globalia Corporacion Empresarial has teamed up with Mexico's Grupo Angeles to place a bid for two local airlines, Saturday's La Gaceta de los Negocios reported, citing unnamed sources close to negotiations.
Grupo Angeles, a real estate company, will hold 75 pct of the consortium while Globalia will hold the remaining 25 pct, the newspaper said.
The two airlines on the block are state-owned Mexicana de Aviacion and Aeromexico.
Source: forbes.com
Grupo Mexico, Usiminas, Brasil Telecom: Latin Equity Preview
The following stocks may make significant gains or losses in Latin America today. Symbols are in parentheses after the company name and stock prices are from the last session.
Mexico
TV Azteca SA (TVAZTCPO MM): Mexico's second-largest television broadcaster yesterday said its Azteca America unit, which serves the Spanish-speaking market in the U.S., signed an agreement with Comcast Corp., the world's largest cable- television provider. The agreement will allow Azteca America to offer programming through Comcast's network in the U.S., TV Azteca said in a statement to the Mexican exchange. TV Azteca shares
Kansas City Southern tries to halt Mexico rail deal
U.S. rail operator Kansas City Southern (KSU.N: Quote, Profile, Research) asked Mexico's anti-trust body on Friday to stop Grupo Mexico (GMEXICOB.MX: Quote, Profile, Research) merging its Ferromex rail operations with those of recently purchased Ferrosur.
In a statement, Kansas City Southern's Mexican unit said the merger of Ferromex and Ferrosur, which was bought from Mexican tycoon Carlos Slim's Grupo Carso last month, would limit competition.
More: today.reuters.com
