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06.12.2008 11:10 am

A-B shares spike, level off after InBev offer

St. Louis Post-Dispatch
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Shares of Anheuser-Busch Cos. (NYSE: BUD) were trading up more than 6 percent at the open of trading Thursday after the the announcement by InBev that it was offering $65 a share to take over the St. Louis-based brewer.

 A-B shares spiked at the opening bell, hitting the $62 level out of the gate. Shares leveled off after the open and were trading around $61.85 at 10:50 a..m. Shares closed Wednesday at $58.35 prior to the announcement of the much anticipated offer. The $46.3 billion all-cash offer would end A-B’s 156-year run as an independent company, creating a global entity that would sell about one-fourth of the world’s beer.

Shares of InBev in afternoon trading in Europe were up about 9 percent at 51 euros.

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10 comments

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Why don’t these greedy shareholders sell at $62 after taxes at $65 what is the difference. My guess is they know it is undervalued at $65, the AB board will reject the $65 and it will go to around $70…keep driving it up and make it more expensive please………..

— kdunlap
9:22 am June 12th, 2008

I pray this deal does not go through not only for the sake of St. Louis, but for the sake of the U.S. If you look at Detroit after all the American auto manufacturers left for Mexico it went to shambles. It was not long before a lot of other cities including St. Louis got locked out of the auto manufacturing jobs. Remember it did not affect just the auto manufacturers, but the companies that make the parts, paint, etc. The citizens of Milwalkee (Miller) and Colorado (Coors) should also be troubled by this move.

It seems to me Matt Blunt was inviting the Missouri Legislature to make a move to stop this deal from going through. I just hope they can move fast enough.

This InBev company has no loyalty to either St. Louis or the U.S. They will sell us down the river to increase their profit by a nickel. They will move jobs out of our city so some mexican or chinnese kid making 5 cents an hour can make Bud. This is an outrage.

— Andrew
9:51 am June 12th, 2008

One analysist said it best when asked about Inbev’s commitment to STL. Inbev says they will not close breweries and make STL there North American Headquarters. She said, “promise them the world and give them hot air”
Don’t believe a word that comes out of their greedy little Brazilian mouths.

— kdunlap
10:08 am June 12th, 2008

yeah, i don’t get it. if the shares were $62 today, what is the big deal about $65? i’m no financial genius, but $3 a share doesn’t sound like a lot…

— nsr
10:34 am June 12th, 2008

This is like Uncle Sam selling the family silver service.

Our Nation is losing its identity as the American way of life
is economically partitioned and globally bought and sold.

The King of Beers is all about what made and built America…
Charity work, theme parks, atheletics at all levels, good jobs,
so much more that now will be at the risk of a different budget mindset…

Who else can stand in these shoes of an American Bred and Born Clydesdale
and say The KING is HERE … and that the Kindgdom is still America’s
red, white and blue? Is Lady Liberty really ready to be “that ripe”?

— Robert C. Withington
12:48 pm June 12th, 2008

If this is allowed to go through St. Louis will have nothing else to really be proud of on an national level. Yes we have the Zoo….the Arch, Botanical Gardens…but they don’t come close to Anheuser-Busch when it comes to national recognition. In these times when Americans are losing their jobs to foreign companies having this happen is just sad. When will America get back up on it’s feet and fight this kind of corporate greed. I will lose all respect for the Busch family if they don’t fight this. I don’t care if they hold a minority stake in the company..Sad…sad…sad.

— dsinger
2:39 pm June 12th, 2008

I wholeheartedly agree with dsinger re corporate greed robbing our great nation of it’s ability to provide it’s citizen’s decent jobs. We, as a nation, are selling out all of our companies to foreign rule. What will we have left? A-B is the last major American-owned brewery. I think it’s high time we took pride in the fact that we have a product still made in America. Let’s keep this company for ourselves and our national pride. If share price is the only important issue here– I’m sure A-B’s management and staff can prove up to the task to raise the price under their own efforts–not those of a foreign brewery who will ultimately cut costs (American jobs and benefits) as has been their history. Wake up America before it is too late! Anheuser-Busch products, unlike many hybrids, such as automobiles, provide all Americans a genuine opportunity to buy American-owned, American-made. Buy American!!!!!!

— MLou
6:21 pm June 12th, 2008

I am a native St. Louisan and would be very disappointed if AB is sold. I have very fond memories of all the wonderful things the Busch company and family have done for my beautiful city.

— Davis Acuff
12:39 pm June 13th, 2008

Would the last major corporation in St. Louis turn the lights out when they leave. It will be over for St. Louis.

— Rita
9:48 am June 14th, 2008

If you don’t like this deal, you might think twice about vampire global capitalism and its apologists–pencil-pushers like David Nicklaus. From the corporate perspective this deal is fantastic. People posting here are arguing against the deal based on moral values and issues of quality of life. Corporate capitalism has no values and cares nothing for quality of life. It’s about numbers–particularly ones with dollar signs in front of them.

— MOProg
10:55 am June 16th, 2008