10.22.2008 9:08 am
Shareholder advisory group supports InBev’s buyout of A-B
St. Louis Post-Dispatch
Proxy Governance Inc., a proxy advisory service, is supporting the acquisition of Anheuser-Busch Cos. by InBev NV of Belgium.
Under the terms of the agreement, Anheuser-Busch shareholders will receive $70 in cash per share when the deal closes. The $52 billion buyout is expected to happen later this year.
In a Tuesday press release, Proxy Governance said it “supports both the early and active involvement of the BUD board in the transaction, and the sale price ultimately negotiated, which appears fair in light of the company’s historical share price.”
A-B shareholders will meet on Nov. 12 to decide whether to approve the acquisition, which is backed by Anheuser-Busch management. Last month, InBev shareholders approved the deal.
Jeremiah McWilliams is a native Virginian who came to the Post-Dispatch in early 2007 to cover beer and other consumer products. He previously covered manufacturing for the Virginian-Pilot newspaper in Norfolk, Va. He is a graduate of Washington and Lee University. 
I cannot believe that people still think that this deal will go through. inbev stock price has declined 41% in the last month. There credit rating has dropped. With the market the way it is and is likely to stay for a while, they still think that they are going to be able to sell off non core assets for the price they thought they were 6 months ago much less find someone who can get a loan???
the dollar has gained considerably - even though they have it hedged, what happens if the loser of that bet can’t cover the cost? This deal makes absolutely no sense whatsover!
Give up and go home Brito -
Inbev probably has the money in the bank via Letters of Credit.
I would agree with you Lori that the cost to Inbev keeps rising and the value of the assets keeps declining in this market. IMHO it is a train wreck waiting to happen it’s just where does the train derail. I am afraid AB wether locally, national or market share will be a shell of it’s former self when it all shakes out.
everything Lori said! Plus this round of syndication for the loans is getting a little rough. A few of the banks that gave letters in august are no longer around OR have been bailed out by their govnt. The costs attached to these loans will be HUGE compared to a few months ago, he can’t even find a “partner” to get the bridge loan to start this deal since
Inbev stopped their new issuing of shares.
At what cost is he willing to make this happen? You sell what you just bought??? You take out massive loans that have enormous fees attached and have to be paid back in short order. BEC will not be sold for a long time, he can’t sell the non core at fire sale prices.
I have said it from the start, he will ruin this company. He and his billionaire cronies seem to be dead set on making this happen, but at what costs to all of the cities involved.
Lisa, I agree with you when you say “dead set on making this happen” I have always believed it was more about Brito’s ego than a deal that made economic “cents”. By Brito’s own words, he has no other interest outside of the brewery business, it is his life and he doesn’t want to have to eat crow and hand AB over a billion dollars in a cancelation fee.
I believe that Brito will move heaven and earth to get this done because InBev needs A-B in order to survive. As Lori stated, InBev stock is in the toilet, and the only way they are going to make any money is to own A-B. They are not brewers, they are businessmen who buy companies and sell off assets to make money. InBev will be exposed for the shell that it is without A-B. I still hope the financing will fall apart, but it appears less likely now that the credit market is thawing. InBev will ruin A-B - I agree - but I am sure Brito doesn’t care. After all, he is willing to pay $52B for the name “Budweiser” - what did he say, “It’s America in a bottle.”
My only hope is that Modello holds up the purchase and Carlos the Great has to come up with another 15 billion to complete the deal. Maybe Carlos should sell off half of Inbev to purchase AB.
This is very Sad. I work at AB IT and the outlook is grim. We just heard about 200 layoffs from enterprise IT. Well AB IT is the biggest in Saint Louis and prepare for TONS more. With the flood of IT professionals in the market in Saint Louis, there are going to be tough times.
Rumor-ville at AB says InBev WILL outsource to IBM and Brito’s thoughts are AB is a beer company not IT company. However true, Brito does not understand the AB infrastructures and how close IT deals with the brewery, marketing, and wholesalers. The entire IT Migration to IBM will cost millions initially and there is no solid proof outsourcing IT will save cash in the long run however it is true it will affect IT services however this is not Britos objective; selling beer is.
This one was a pretty solid rumor and one can just hope it’s wrong but only time will tell. Prepare for many layoffs and just hope IBM sources their IT quarters for AB here in Saint Louis else the jobs are history.
Watch for the announcement on Nov. 17th though not sure if the media will cover it. STLToday if you are reading this > DO watch for this news and cover it! This is huge blow for Saint Louis.
To put politics in play, Obama’s policy discourages outsourcing and takes tax benefits to companies that outsource away and credits companies that ‘in-source.’
Obama could save Saint Louis … Keep this in mind! I know the Post Dispatch supports Obama and let’s hope we can get some coverage in Saint Louis on McCain’s campaign versus Obama’s campagin and how it will affect jobs in Saint Louis and the nation.
I normally don’t resond to blog’s but following this merger from the beginning until now, I actually feel the need put a comment on here. I understand the concern for jobs, because there is no guarantee that Brito won’t outsource when the deal is done, especially IT. But come on people, two words for you, “It’s Business.” That is all it is. You see it in the news every single day, this company is merging with that company, this company is going oversea’s, etc… Especially in the beer industry where the only people that are safe are micro-brew’s that have found enough of a niche in their market to be sucessful, but not to the point of competing on the level of AB and InBev. Finally, for all you people out there praying that the financing for the deal won’t go through, or Modelo some how has an affect on the whole deal, it will happen eventually. If not now, 3-5 years from now and if not InBev, some other company. So even if it doesn’t happen now and everyone thinks they won the battle, the nature of business will always win the war.