Wal-Mart de Mexico Shares Lower on Renewed Bribery Allegations

Shares of retailer Wal-Mart de Mexico (WMMVY, WALMEX.MX) opened lower Tuesday after the New York Times published an article renewing allegations that the company used bribery to secure permits for building stores in Mexico, including one near a famous archeological site outside Mexico City.

Shares of Walmex, as the local unit of Wal-Mart Stores Inc. (WMT) is known, were down 2% at MXN42.24 pesos around 9:50 a.m. EST.

Walmex said in a statement that the store in question, near the pyramids of Teotihuacan, is among those that are part of an internal investigation being conducted by the parent company, and that it "shall refrain from making any comments on specific allegations or claims."

Credit Suisse said in a report that it expects the news to be negative for Walmex shares.

"We think this might bring back volatility to the shares after news on the case was relatively positive in recent weeks," the investment bank said. "From a merely operational standpoint, recent feedback suggests that achieving the (revised) guidance for store openings in 2012, was still reachable, but somewhat tight."

Following the bribery allegations early this year, Walmex tempered its expansion plans for Mexico to an 8% increase in floor space from the original 12%.

Write to Anthony Harrup at anthony.harrup@dowjones.com

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Source: http://www.foxbusiness.com/news/2012/12/18/wal-mart-de-mexico-shares-lower-on-renewed-bribery-allegations/

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