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06.17.2008 8:37 am

Buffett backs InBev bid, Belgian newspaper says

St. Louis Post-Dispatch
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Belgian newspaper De Standard this morning is reporting that Warren Buffett is supporting InBev’s $47.5 billion takeover offer for Anheuser-Busch Cos.

Quoting sources, the paper says  Buffett is willing to sell his A-B shares to the Belgian brewer. Buffett’s Berkshire Hathaway owns a 5 percent stake in the St. Louis-based brewer.

A spokeswoman at Berkshire Hathaway would not provide comment to De Standard for its story.

Buffett’s support for the deal could smooth the way for InBev’s effort to buy the St. Louis-based brewer. InBev is offering $65 a share for A-B.

British newspaper The Observer reported Sunday that the billionaire plans to meet with A-B CEO August A. Busch IV this week to discuss the InBev offer.

Citing its anonymous sources, The Observer reported that Buffett believes the Busch family should consider discussions with InBev rather than reject the bid outright.

126 comments

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John, you are an idiot. How can you believe saving a company like AB is not as important as having good economic policy. AB is an establish corporating who employs a great deal of people in St. Louis. Last time i checked there are no companies lined up to move their headquarters here, all i have seen is companies leaving st. louis. But it is people like you who have no clue what establised large corporations mean to the local economy here is St. Louis. You guys can think and wish all you want about companies waiting to move here because of what our economic policies may or maynot be. I am glad that you have given up on the identity of St. Louis and the hard working people. Way to Go Genius!!

— Billiecircus
11:54 am June 17th, 2008

“This ought to also be a warning to everyone who owns anything subject to the capital gains tax. Buffet probably know that Obama is going to raise the rates through the roof. So, he will be selling anything he can before that happens. Obama often quotes Uncle Warren as saying a cap gains tax of 25% won’t matter. To him, I guess not. To the average American selling their stock or house, it matters a lot.”

Flyover, The average American selling their house does not pay capital gains tax on the sale.

— Dan
11:54 am June 17th, 2008

Any American who supports the take-over of American traditions by foreigners should be treated as a traitor. A-B is a staple not only to St. Louis but to America as a whole. It is living proof that the American Dream is possible.

— Catherine
11:55 am June 17th, 2008

Buffett needs to go to hell. He only owns 5% of A-B. His share of A-B is less than A-B employees. The Busch family and A-B employees own a combined 10% of A-B - twice Buffett’s shares.

I hope Busch IV doesn’t cave into Buffett.

— Terrence
11:57 am June 17th, 2008

Geez people. Worried about losing A-B jobs? Consider this.

Job cuts come from cost cutting. Large acquisitions like this usually see 10-15% of the target company’s jobs cut. While a big loss, St. Louis would survive. Back to cost-cutting. There wouldn’t be so much fat to trim (making it a good takeover target) if there weren’t so many A-B employees making 50-60k to push brooms around and everyone getting a couple months of vacation.
Stop whining and start planning for the future.

— Reasonable Man
11:58 am June 17th, 2008

Schlafly will still be owned and brewed locally. I guess it’s time for us all to finally support our TRUE hometown brewery. 100% St. Louis

— PeteB
11:59 am June 17th, 2008

Keep in mind that the shareholders are not loyal to St. Louis - $65 is going to be hard to turn down by the shareholders. It is time to consider this a done deal. Also keep in mind that $65 per share is not sustainable - the price of InBev will likely plummet after the sale - very typical in acquisitions like this.

— DD
11:59 am June 17th, 2008

Holey Mackerel Anheuser-Busch is one of the few companies left that is producing in the good old USA. They represent the best of what is American. Leave it alone, it is helping tons more people than Midas Buffett ever thought of. I never wished anything bad about anyone but I hope this guy chokes stuffing all the $100 in his big mouth.

— Betty Cavin
12:01 pm June 17th, 2008

This is a good offer for shareholders. BUD shares have been stagnant for years. So I can understand Buffett’s position.

Buffett however, can’t possibly appreciate how much a part AB is to St. Louis’ tradition and history. To lose AB would be like losing an arm.

— Bruce Dannenmaier
12:02 pm June 17th, 2008

I am very against InBev buying A-B; both for STL and the USA. However, the only way to stop this is to call your stock broker, buy as much BUD stock as you can and vote NO if this deal is brought to the shareholders. Shareholders have the only opinion that matters.

— Jeremy
12:04 pm June 17th, 2008

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