UPDATE 1-Modelo says will not sell stake to AB Inbev

* Modelo says no deal despite losing court case

* See growth in Mexico, plans big investment next year
(Updates with sales forecasts, background; previous dateline
MEXICO CITY)

NAVA, Mexico, Nov 5 (BestGrowthStock) – Mexican brewer Grupo Modelo
(GMODELOC.MX: ) said on Friday it has no plans to sell an equity
stake to partner Anheuser-Busch InBev NV (ABI.BR: ), despite
losing a court case that raised speculation of a deal.

AB InBev, the world’s biggest brewer, has a 50.2 percent
equity stake in the Mexican company. Modelo in July lost an
arbitration case against AB InBev, and analysts have predicted
that Mexican shareholders would sell their stakes to AB InBev.

Modelo, maker of Corona beer, claimed $2.5 billion in the
dispute on the grounds that it was not consulted about InBev’s
$52 billion acquisition of Anheuser-Busch, which created
Anheuser-Busch InBev.

Carlos Fernandez, who is from the family that founded the
Mexican brewer and leads the board of directors, told reporters
during a visit to a new plant in the northern Mexico that
Modelo was not interested in selling.

Modelo, meanwhile, expects its sales volume to grow in line
with Mexico’s overall economy in 2011, which economists see
expanding 3.5 percent.

Modelo also plans to invest 4 billion pesos ($327 million)
next year, financial director Emilio Fullaondo said.
(Reporting by Adriana Barrera; Editing by Richard Chang)

UPDATE 1-Modelo says will not sell stake to AB Inbev