By Anthony Harrup


Shares of retail and banking company Grupo Elektra fell sharply after regulators ordered the Mexican stock exchange to lift a trading suspension.

Elektra shares were down 72% on the Mexican stock exchange, at 265.18 pesos ($13), on Monday. The market's benchmark IPC index was up 1.5%.

Elektra, controlled by Ricardo Salinas Pliego, has sought to block the resumption of trading, which exchange operator Bolsa Mexicana de Valores said was ordered by the Banking and Securities Commission. The shares were suspended in July when Elektra said it had been informed by its controlling group of a possible fraud by depositaries of their shares. Elektra was also removed from the IPC index.

Elektra alleges that Astor Asset Management 3 illegally sold Elektra shares that had been pledged as collateral for a loan. Astor said Salinas Pliego defaulted on the $110 million loan, and violated regulations by not making public the pledge. Grupo Salinas, which comprises companies controlled by Salinas Pliego, said in August that the businessman made numerous offers to repay the loan in full on the condition that the shares be restored.

Elektra said Monday that it has a federal court order requiring regulators to maintain the suspension of its shares, and that any transaction with the shares could have legal implications for those involved. The company said recent resumptions of trading in the shares triggered suspensions as price moves exceeded parameters, and that Monday's continuous trading had caused "irreparable damage."

Last week, Elektra called a shareholder meeting for Dec. 27 to discuss a proposal to take the company private and delist its shares from the Mexican stock exchange and from Latibex, a market for Latin American securities on the Spanish stock exchange.


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


(END) Dow Jones Newswires

12-02-24 1601ET