UPDATE 1-Mexico's Modelo not looking to buy back stake

(Adds Modelo quote, Anheuser response, stock quotes)

MEXICO CITY, Oct 17 (Reuters) - Grupo Modelo denied a report that it is seeking to buy back all or part of the 50 percent stake that its U.S. partner Anheuser-Busch Cos Inc holds in the Mexican brewer.

The Wall Street Journal reported in its Friday edition that Modelo (GMODELOC.MX), maker of Corona beer, wanted to buy back the stake, citing people familiar with the matter.

The report "is not true," a Modelo spokeswoman in Mexico City told Reuters.

Anheuser (BUD.N) agreed in July to a $52 billion takeover by Belgium's InBev NV INTB.BR, maker of Stella Artois and Beck's, to create the world's largest brewer.

The spokeswoman said Modelo was focusing on the arbitration it had just started against Anheuser, claiming its U.S. partner did not consult it about InBev's offer.

"It is not the intention" to buy back the stake from Anheuser, the spokeswoman said.

"We want them (Anheuser) to respect our right to decide who is our partner," she added, referring to the motive behind the arbitration.

Anheuser declined to comment on Modelo's comment that it was not seeking to buy back the 50 percent stake.