LABATT TAKES ANOTHER FINANCIAL HIT, THIS TIME IN MEXICO
John Labatt Ltd., "already reeling from disruptions in
professional sports and stalled in its plans to sell off its
entertainment assets," has taken a C$90M hit to its Femza holding
with the recent 15% devaluation of the Mexican Peso. Last July,
Labatt purchased 22% of brewer. On Tuesday, the Mexican
government lowered the limits on how low the peso trades with the
U.S. dollar, which in turn led to the peso's devaluing by 15%.
If this situation persists, Labatt may have to reduce the value
of the Femza asset by about C$90M. Earlier this month, Labatt
reported a C$13M loss from the baseball strike (Paul Brent,
FINANCIAL POST, 12/22).