Yesterday, we reported that a local shareholder was suing Anheuser-Busch Cos. and its board of directors, arguing board members breached their duties to shareholders by failing to properly consider “indications of interest” from suitors such as InBev of Belgium.
Uh, hold that thought.
Plaintiff James G. Mayfield Jr. is having his name removed from what he calls the “goofy” lawsuit. This morning, Mayfield said, he told his lawyer to “make damn sure” his name was taken off the lawsuit; later in the day, Mayfield confirmed lawyers were doing just that.
Mayfield said he actually does not support a takeover of Anheuser-Busch; “I wouldn’t want them to be taken over by anybody,” he said this morning in a phone interview.
“My main concern is that I don’t want my name associated with anything negative about Anheuser-Busch,” said Mayfield, 81, who worked on the Anheuser-Busch account for the D’Arcy advertising firm and still works occasionally on Anheuser-Busch’s billboard advertising.
Frank A. Bottini Jr., the San Diego-based attorney who is taking the lead role in the case, said Mayfield would be substituted out of the case if he wished. But that doesn’t mean the matter will be dropped.
“We have other clients,” said Bottini, of Johnson Bottini LLP, in an interview today. ”The case will go on.”
The lawsuit, filed Wednesday in St. Louis City Circuit Court, claims that members of A-B’s board have tried to entrench themselves in office by spurning overtures from InBev. The suit seeks class-action status and an order prohibiting the board from “adopting, implementing or instituting any defensive measures” that would make the company more costly or difficult to acquire.
“The Busch family members that effectively control the company have refused to meet with InBev and have discouraged any public bid for Anheuser-Busch by stating that no company will acquire Anheuser-Busch while they sit on the company’s board,” according to the suit.
The suit claims that a takeover bid from InBev would offer a “significant premium” to A-B’s stockholders, but the board of directors is failing to maximize shareholder value by “attempting to frustrate InBev’s bid.”
Bottini said ”any notion that this case is filed to somehow harm the company…is ludicrous.” He said the goal was not necessarily to force the company to sell itself.
But, he said, ”we want to do what’s in the best interest of shareholders” by compelling the board to respond to all good-faith offers.
Mayfield said his wife is friends with local attorney Richard Hein, who approached him with the idea of a lawsuit. It was supposed to be a “protection of shareholders,” Mayfield recalled, designed to ensure that shareholders would get an equitable price in the event of a takeover. Hein referred questions about the case to Bottini.
Mayfield said he agreed to the lawsuit over the phone, as long as it was “not negative towards Anheuser-Busch,” he said today. Missouri law has traditionally not required a class-action plaintiff to sign verification documents for state cases.
Previous story:
It didn’t take long for the lawsuits to start flying.
With media reports circulating that Belgian brewer InBev is interested in buying St. Louis-based Anheuser-Busch Cos., a local shareholder is suing A-B and its board of directors, arguing they breached their duties to shareholders by failing to properly consider “indications of interest” from suitors such as InBev.
InBev has not made a public bid for Anheuser-Busch, and neither company is commenting on the takeover reports, which have been based on anonymous sources.
A lawsuit suit filed Wednesday in St. Louis City Circuit Court, naming A-B shareholder James Mayfield as the plaintiff, claims that members of A-B’s board have tried to entrench themselves in office by spurning overtures from InBev. The suit seeks class action status and a court order prohibiting the board from “adopting, implementing or instituting any defensive measures” that would make the company more costly or difficult to acquire.
“The Busch family members that effectively control the company have refused to meet with InBev and have discouraged any public bid for Anheuser-Busch by stating that no company will acquire Anheuser-Busch while they sit on the company’s board,” according to the suit.
The suit claims that a takeover bid from InBev would offer a “significant premium” to A-B’s stockholders, but the board of directors is not maximizing shareholder value by “attempting to frustrate InBev’s bid.”
Gary L. Rutledge, vice president of legal and governmental affairs at Anheuser-Busch, said the company was aware of the lawsuit and is reviewing its claims.
“When it comes to speculation about our business, however, Anheuser-Busch’s policy has been consistent,” Rutledge said in a statement. ”We do not confirm, deny or comment on rumors.”
Local attorney Richard B. Hein, who is representing Mayfield, did not return a call.