Grupo Modelo said it did not wish to buy back the 50% stake that its U.S. partner Anheuser-Busch holds in the Modelo/Anheuser-Busch joint venture, according to a Reuters report released today. 

It appears that the Modelo statement was issued to refute an article in the October 17, 2008 edition of The Wall Street Journal, which speculated, citing people familiar with the matter, that Modelo wished to buy back the stake.

A spokeswoman for Modelo quoted in the Reuters report said, “We want them (Anheuser) to respect our right to decide who is our partner,” referring to the rationale for the arbitration proceeding that Modelo initated against Anheuser-Busch on October 16, 2008.   Analysts believe Modelo may be seeking more money from Anheuser-Busch and/or InBev or to block the merger. 

The arbitration could delay the merger, depending on InBev’s concerns about the viability of Anheuser-Busch stake in the Anheuser-Busch/Modelo joint venture, which a material asset of Anheuser-Busch. 

The first step in the arbitration proceeding will be the appointment of arbitrators, which will be selected in accordance with Section 12.1 of the parties’ 1993 Investment Agreement.