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Wednesday, April 8, 2009

1992 A"sarco May Sell All of Its Stake in Mexican Firm" (Grupo mexico)

"Asarco May Sell All of Its Stake in Mexican Firm
Keller, John J. Wall Street Journal. (Eastern edition). New York, N.Y.: Jul 1, 1991. pg. C5

NEW YORK -- Asarco Inc., seeking to focus more of its funds on expanding its U.S. operations, said it is considering an international public stock offering or the private sale of some or all of its investment in Mexico Desarrollo Industrial Minero S.A. de C.V. (Medimsa).

Asarco, which traces its roots back to its Mexican mining investments in 1899, owns 31.2% of Medimsa, Mexico City, a nonferrous metals mining company operating 13 mines and seven metallurgical plants in Mexico."

..."At the end of 1990, Asarco valued its Medimsa investment at $288.2 million. A sale would virtually pull Asarco out of Mexico, if a branch office of its specialty chemicals business based in West Haven, Conn., isn't counted. The rest of Medimsa is owned by Grupo Mexico, a Mexican conglomerate."

....." In the past three years, Asarco has helped fund Medimsa's [i.e. Grupo Mexico's] acquisition of Mexicana de Cobre and Mexicana de Cananea, the country's two major copper-producing companies."....."To account for the potential sale of Medimsa, the spokesman said Asarco has changed from the equity method of accounting for its interest in the company to the cost method, effective with the second quarter of 1991."

[in 1992 ASARCO El Paso installed the two largest contop furnaces in the world and began secretly and illegally burning hazardous waste for profit.   Carlyle Group now owns about 20% of Grupo Mexico]

Copyright Dow Jones & Company Inc Jul 1, 1991 [reproduced for fair use]

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