Overview

• - Grupo México told the Mexican stock exchange it has a binding proposal to acquire up to 100% of Banamex, offering 0.85x book for the 25% block and 0.80x for the remaining 75%.
• - The company said it is prepared to purchase Fernando Chico Pardo’s newly agreed 25% stake or keep him as a minority holder with standard protections.
• - Citigroup said it has not received an offer, pledged to review any submission for regulatory viability and closing certainty, and reiterated the Chico Pardo deal with an IPO remains its preferred path.
• - Investors recoiled at the banking foray: Grupo México shares fell about 15% on Monday, erasing roughly 193 billion pesos ($10.3 billion) in market value and pulling the S&P/BMV IPC down 2.55%.
• - Bloomberg’s index showed Germán Larrea’s fortune down about $5.95 billion to $49.5 billion, as analysts warned a full takeover could strain the conglomerate’s balance sheet and shift its risk profile with uncertain odds of success.