Bomb Explodes Outside Sears Store In Southern Mexico

OAXACA CITY, Mexico (AP)--A small, homemade bomb exploded outside a Sears (SHLD) store in the troubled southern city of Oaxaca, damaging the entrance butcausing no injuries.

A similar bomb was found and deactivated outside a nearby Banamex bank, stateAttorney General Evencio Martinez told the local W Radio station on Wednesday.

"I believe it could be (the work of) local groups, given the type and style ofdevice," Martinez said, without elaborating.

However, he denied the bombs were related to the People's Revolutionary Army,or EPR, a small leftist group that bombed gas pipelines in July.

Sears in Mexico is operated by Mexican billionaire Carlos Slim. In 2004, anEPR splinter group placed small bombs outside banks and an office of Telmex,Slim's telephone company.

Television footage from the shopping mall where the bomb exploded hours beforebusinesses opened showed glass scattered across a parking lot, and damage to asteel security curtain and the entrance facade.

The Interior Department said federal prosecutors were investigating and wouldwork with state officials to find those responsible.

Oaxaca has suffered from more than a year of political unrest, and on Tuesday,Amnesty International Secretary-General Irene Khan urged Mexican federalofficials to investigate alleged police abuse against demonstrators.

Khan, who is on a weeklong visit to Mexico, presented a report about theOaxaca conflict that documents the unsolved killings of 18 people, arbitrarydetentions and other abuses during last year's protests.

The conflict began in May 2006 as a strike by teachers seeking higher pay andquickly grew into a broader movement known as the People's Assembly of Oaxaca,or APPO. It included Indian groups, students, farmers and leftists who claimGov. Ulises Ruiz rigged his electoral victory and has repressed opponents.

Ruiz rejected the report, saying after a meeting with Khan on Tuesday that "wetold them that we believe those who wrote it are advisers for the APPO."

Officials say at least 12 people were killed, mostly protesters shot bygunmen, before federal police retook the city center in October.

(END) Dow Jones Newswires 08-01-07 2206ET Copyright (c) 2007 Dow Jones & Company, Inc.