BUD price slips backward again
Anheuser-Busch shares fell almost 4 percent to $63.50 during today’s turmoil on Wall Street. The selloff leaves BUD more than 9 percent below the $70 a share that InBev has agreed to pay, in cash, for all of A-B. InBev reiterated today – after its shareholders gave 99.9 percent approval to the deal – that its financing remains solid.
The only hiccup is that Fortis, one of the banks in InBev’s lending syndicate, had to be bailed out over the weekend by the governments of Belgium, the Netherlands and Luxembourg. But it’s not even clear whether Fortis will have to pull out of the syndicate, and it’s certainly a stretch to think its rescue could cause the whole package to collapse.
Moody’s also downgraded A-B’s credit rating today, but that was expected. And it assigned InBev an investment-grade rating, a crucial piece of CEO Carlos Brito’s financing plan.
The deal is supposed to close by year’s end, which means a pretty nice annualized return for anyone who buys at today’s price. See the comments on our previous post for some readers’ expected-return calculations.



David Nicklaus has covered St. Louis business for more than 25 years. His column appears three days a week on the Post-Dispatch business page.
I am wondering why, anyone would be willing to give up A-B for such a small gain vs. holding the stock over time and letting it grow. Case in point; 1) I have owned A-B share since they went public, my return on just the dividend is 141% a year, plus I still own the stock! 2) A-B consistantly increases it dividend, 3) it is currently paying better than T-bills - if you are a recent buyer of A-B, and A-B pays a lot in Local, State, and Federal tax - much of which will be lost as INBEV gleans all of the profit out of the company. 4) A-B is a slow and steady money maker, and is on the plus side of growth this year, unlike most of the funds that own A-B that have complained about its lack of performance, including Warren Buffett. Selling now, right when A-B is gonig into its next level of growth is short sighted. So some folks will make a little bit on buying today only - but will give up a huge payday over the next five,ten, 20 years with an independent A-B