Anheuser-Busch’s stock up; analysts expect bigger profits and buyout
Those jittery stock brokers and investors are apparently a little more comfortable with Anheuser-Busch this week. With A-B shareholders voting next Wednesday on InBev’s $70-per-share buyout, the St. Louis brewer’s stock closed at $64.60 Tuesday afternoon, up about 1 percent. As of around 9 a.m., it was hovering at around $64.15 per share.
That’s a major improvement from just a few weeks ago, when Anheuser-Busch’s shares dropped well below $60. That big spread between the trading price and the promised $70 was partly due to investors selling shares to grab cash and compensate for losses on other investments. But the gap also partly reflected fears that InBev’s debt-financed deal would fall apart. Those fears have not entirely disappeared, as Reuters reports, even though analysts expect the deal to go through.
One typical report: analyst Carlos Laboy of Credit Suisse says “there are few options for revision of the deal that would not result in punishing litigation that would be economically destructive.” In other words, InBev couldn’t walk away from the deal, even if it wanted to. (Which it almost certainly does not).
One good sign for the brewer of Budweiser: Wall Street analysts polled by Thomson Financial are expecting A-B to post increases in sales and profits later tomorrow.



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.
Wonder if those people over at A-B who received their pink slips this week really care anymore what the stock does?