MEXICO CITY, Oct 27 (Reuters) - Mexico’s Grupo Elektra said it had settled a legal dispute with the Mexican stock exchange, which the company controlled by billionaire Ricardo Salinas had blamed for causing its share price to slump in 2012.
Elektra said in a statement to the exchange on Monday that an agreement had been approved by a Mexico City court to prevent any change to the weighting of the company in Mexico’s benchmark IPC stock index until August 2016.
The company, which runs appliance stores that have bank and money transfer branches, sued the Bolsa Mexicana de Valores in 2012 for damages after its share price plummeted following a change in the methodology of the IPC index.
Elektra’s stock slumped about 70 percent following proposed changes to the IPC in April 2012. Its share price has failed to recover since the drop.
Elektra alleged that comments from Luis Tellez, the president of the Mexican Stock Exchange, sparked share price losses. Tellez said last week that he will step down next year for personal reasons.
A Reuters report in early 2012 showed that a surge in Elektra’s stock price in 2011 was due to its importance in the IPC index combined with the company’s use of a derivative instrument known as an equity swap that allowed Elektra to monetize its share-price gains.
Salinas delisted shares of Elektra and his broadcaster TV Azteca in 2005 from trading in New York after facing fraud charges from U.S. regulators over a shady debt deal. (Reporting by Michael O‘Boyle; Editing by Ken Wills)