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07.07.2008 3:17 pm

A-B raises a Cuban question

St. Louis Post-Dispatch

Anheuser-Busch responded today to InBev’s planned effort to oust the A-B board, calling it a “self-serving effort by InBev” to buy A-B for a bargain price.

 A-B said it will file a consent-revocation statement in a few days with “additional specific information” in opposition to InBev’s plan.

Meanwhile, A-B raises a novel foreign-policy question:

Shareholders also should be aware that InBev, thorugh a subsidiary, has a significant partnership with the government of Cuba to produce and distribute products in Cuba. InBev has not commented on how that would impact business with Anheuser-Busch’s customers, nor on its ability to complete an acquisition under U.S. laws that affect acquisitions of U.S. companies by foreign companies.

Sounds like the company may look for help from its friends in high places as this battle continues.

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8 comments

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Forget Cuba and think about your suffering shareholders A-B board: stop trading press releases and enter into discussions with a deep pocketed, willing buyer. The board is on the precipice of breaching its fiduciary duties. InBev wants to talk friendly, but cant because A-B is too proud. Message to the Buschs and the board: it is not your company. InBev’s proxy solicitor is no doubt busy working the phones, based on what they are getting paid per the filing today, and the majority of shareholders will take certainty now; not some pie-eyed promises to deliver value a year from now. If the board is smart, they will sit down and negotiate a higher price. If they aren’t smart they wont be directors.

— Jack Bauer
3:33 pm July 7th, 2008

There is nothing stopping any shareholder of A-B stocks from selling now, except greed. The board has been charged for looking out for all stockholders and all stockholders have time and again been allowed to vote for boardmembers. Message to the Buschs and the board: You are doing a great job under very adverse conditions. Keep up the good fight.

— Jim
3:58 pm July 7th, 2008

Keep up the fight A-B! Keep the company American and keep your promises. I would gladly trade some quick money now for a future of earnings of a true American, iconic company. Shareholders, don’t let the weak dollar destroy America piece by piece. InBev doesn’t want to go after Miller/Coors because they do not want to compete with A-B. A-B will win year after year. They are the ones that want to look superior. How can you look superior when you compete with the King. Rock on A-B!

— Tim S.
8:26 pm July 7th, 2008

A-B’s board did due its fiduciary duties and decided inbev offer was to low and now inbev is mad. So now they will try to remove the board not to help the shareholders but to get their own way and a great company for to low of a price. I say the board is outstanding and yes I do own stock.

— jc
10:20 pm July 7th, 2008

I wonder how the folk’s down in the Miami area are going to like this? InBev subsidiary controls 44% of the Castro controlled Cuban market. This is some wicked s***! Carlos Brito in bed with Castro?! Eee Gatz!!

— Frank
11:44 pm July 7th, 2008

This, honestly, looks weak for A-B. I don’t see how this matters in the grand scheme of things; it just makes them look desparate.

— Paul
9:44 am July 8th, 2008

I think it does matter there are laws that prohibit the ownership of Cuban campanies doing business in the US.
I think Inbev is going on the cheap, if they just raise the share price to $70 bucks the fight is over!
They are use to getting their way and they are the bully in the neighborhood.

— Ken
8:46 am July 9th, 2008

Ken–no, the law doesn’t prevent InBev from doing business in the US while they do business in Cuba since they are a foreign company. How else are they currently allowed to sell their beer in the US while doing business in Cuba?

— Paul
1:23 pm July 9th, 2008