Is the A-B board stalling, holding out or tilting at windmills?
Today the Anheuser-Busch board of directors rejected a bid by InBev to buy the St. Louis brewer for $65 a share. The board said the offer undervalued A-B. According to our story, board chairman Patrick Stokes said:
The proposed price does not reflect the strength of Anheuser-Busch’s global, iconic brands Bud Light and Budweiser, the top two selling beer brands in the world, with Budweiser selling in more than 80 countries today.
One might look at the board’s stance this way: We might be willing to sell the company — but not at the price you offered.
So is the board holding out for a better price? Or is it sincerely resisting a takeover attempt by the Belgium brewer? Is that a fruitful effort by A-B’s board? Or, realistically, is there anything they can really do to stop a takeover?


Kurt is the director of social media for the Post-Dispatch, where he has worked since August 2002. He's been a journalist since 1982, covering municipal government, courts, education and two hurricanes as a reporter before becoming an editor.
The rejection may not change much in the long run, but it still puts a smile on my face knowing that good ol’ A-B is telling InBev where it can shove its $46 billion takeover bid
A-B THANK YOU for telling InBev and the rest of the world that our AMERICAN LAGER can not be bought.
I think that something needs to be done about the buying out of American corporations by foreign interests. I applaud A-B for standing their ground! I hope that their shareholders will see the sense in what the Boardmembers are attempting to do!
They’re holding out for at least $70 per share. Expected. A hostile takeover will cost more in the long run and the stubborn will take it to the wall, so to speak. It’s a done deal if the cuties from Brazil decide they really want it. Americans better get used to this sort of thing. Thanks to crooked wall-streeters, we now owe some foreigners more capital than they owe us. We won’t have much more to give them than corporate america’s finest companies. Korea is now out of the axis of evil. Perhaps someday InBev will be too!
I agree with Jeff… it may be fruitless but nothing makes me more proud than AB telling InBev to go to hell. Keep it up AB and maybe you can win this.
I absolutely feel that AB is stalling. As a former employee and current shareholder I feel this is a done deal. The financial gain from this takeover for the shareholders and everyone in the Busch family is huge. The domestic beer market is at a stand still and consolidation is on the verge from Miller and Coors. I know it’s seems un American but it’s just business. I don’t think AB can stop this train, they put themselve in this position. They had to save face and reject this offer, but behind the scenes it’s about bank accounts in today’s economy even for the rich.
This is just a lopsided Boards attempt to save the Busch families power. Read the real papers like WSJ. This board is hand picked to defend blue blood power. Real value to the average stockholder is being offered. As far as it being a foreign company. The USA goes into Iraq preaching democracy, but when it hits home like this we want to throw up undemocratic blocks in order to prop up inadequately managed companies. The local outrage is just a typical small minded st. louis approach. That’s why were the 19th ranked city and falling. St. Louis is not just AB. Let’s not focus on saving a giant company that has screwed it up..rather our education systems and the underprivileged.
Please, please sell to me or I will lose my $50 million, oh who cares, we will just cut more jobs in Belgium, Brazil and Cananda!
Give ‘em hell Auggie the 4th!
Fight for the rich, not fight the rich. Right Carlos.
Cananda? p.s. August the 4th is not on your side pal.
This is not just “small minded” St. Louis. This is COUNTRY wide. Even the farmers (not St Louis farmers) are vey concerned about their contracts for barley etc. REALLY read up on this Phil, take down the $$$ signs first. You have no idea what this basic monolopy mentality will do. The whole Busch dynasty is old, move on, that left with Gussie. This boils down to foreign TAKEOUT, not merge, takeout. We are letting this happen one by one by these companies hoping that their stockholders are asleep or too blinded by the money. I give it less than 10 years and we all will be working for forgein companies. If they don’t send a lot of it overseas. Funny how most counties won’t even allow this anymore.
Everyone just nows seems to be crying foul with their “stagnent” stock. What happened did you just wake up?? Did the $$$ alarm clock sent from Brito wake you up. NO, you have been satisified considering that most stocks are in the tank as the rest of this country because of problems like this. Fast money, easy money, show me the money NOW mentality is killing us all.
Food for thought Lisa. Well said. I will think on it a little more. Owning some stock makes me feel the need to take the extra profit on this deal, as my family is hurting right now. It’s tough to weigh all the consequences and make the right decisions. Much is in the balance, but I cant see the harm in gaining value. Perhaps in the long term you’ll be right. But aren’t we becoming more global every day? shouldn’t we face that fact and stop being so protectionist? Once again, these are only words. I am still mulling it over as well.
Well, Phil, if your family truely is hurting right now, but somehow by your glib comments I wonder but I am sorry all the same, sell it tomorrow as it will be a few dollars less to Uncle Sam. Becoming more global everyday and being removed from you country and being sent global are two different things. Whoever buys the new stock that this company will become better be REALLY patient, like maybe 6-10 years patient just to get its stock up to the $60 that Busch is now. Somehow with today’s mentality I don’t think its going to happen. Brito will have 10 very large banks and stockholders wanting blood. And once again as American being employeed by this company we will pay again.
I am personally rooting for AB IV. InBev’s offer is way too low especially with the devalued dollar.
If somebody wants to take their profit at a price in the $60’s, they can sell now.
This gives AB IV the mandate to begin the corporate restructuring. Selling heretofore sacred items like the theme parks, renegotiating with the unions, cutting back on new product development, taking financial risk with overseas market development, focusing on beer, beer, and more beer!
If the market throws you a cheap hostile take over attempt, make beer. Thanks Inbev for a $50 million tee up.
Budweiser, Micheolob, Corona, and Bud Light is all the world needs.
GO AB-Modelo.
This hometowner’s for you!
They are going to have to come out with a very specific plan to fend off this band of pirates. Cutting costs and streamlining are terms way to general to keep this fight going. I think with a truly creative detailed plan, they still have a shot of fending off this arrogant company who makes nothing but garbage beer all over the world. Imagine how it would feel if one day you said the word Budweiser, and Americans immediately have a look of disgust. I know that I would never drink another under the InBev umbrella. Instead of cowboys in Montana, Busch commercials will soon feature metrosexual Europeans in their cutesy bright colored soccer scarves cheering on some sport that Americans don’t even understand. Will the beer trucks now be towed by Mini Coopers rather than Clydesdales? Maybe we can include GM, Mount Rushmore, The White House, and The Grand Canyon in the deal too.
Phil, if the Busch’s are blue bloods, I’m a monkey’s uncle. Get real.
AB has set the example for social and community responsibility.
Thanks to their examples in glass and aluminum recycling they have led the world in the profitability of all recycling, and set the industry standard fro glass and aluminum.
Thanks to their generous treatment of their employees, contractors, unions, taxes, and social giving, Inbev sees and opportunity to make money.
Thanks to their development of an America’s beer marketing, Inbev sees an opportunity at a bargain basement sale.
AB has always reinvested its growth into its own endeavors, now someone else wants to reap the profits. No thanks.
It is a wake up call to AB to pay attention to its investors, but it is not a reason to sell it down the river.
A-B is negotiating now for a higher share price. It’s bargaining, which would be expected. If A-B could improve their business, they would have done so by now. They’ve been complacent and not very good businessmen in the past. What makes them think we’ll believe them now?
If this does go through, I suggest we all pledge our beer drinking allegiance to Schlafly’s (or your local brewery elsewhere). We can all watch Bud/Bud Light/Busch market share drop to 5%. The lions at the banks will foreclose on Carlos’ $46 billion. Then we can all kick in a few bucks and buy back AB from the banks. The dollar may be down, but the American spirit, creativity, loyalty and resolve will never be.
It is about time an American company or individual stands up for what is ours. AB’s board is right Carlos Brito’s offer is an undervalued offer because his offer is a one time payment. If AB remains independent of a company in a French wantabe country all the profits and jobs remain in America. To the AB board, Warren Buffet, and all the other stockholders- don’t give in and sell, and tell Carlos and Inbev to take their $46 billion, their $50 million in fees, their lies and go to hell or where the sun don’t shine which ever is more economic!!!!!!!!!
Yes, itazoo, they are horrible business people, the worst at everything.
They why they have been trying for a few years, with more years to go, to improve globally too. Not by takeouts.
What has Brito done for improve his brands/business other than to takeout companies take their cash, sell off most of it and move on to the next??
Hey, I have an idea, lets find someone to buy Harley-Davidson.
There is a real bunch of losers…..not!
Way to Anheuser-Busch!!!! Keep my bud american owned and american made!!
If this ever does go through, I beg each and every one of you to never drink another AB (inBev) product again. Tell your friends, relatives, co-workers, anyone you know to help support this great country that we live in. Certain images are meant to be American and ours forever. To see that flying eagle on the AB logo and have it not be ours would be absolutely devastating. Can’t wait to go to a Cards game at InBev Park. As individuals, we can not stop the sale but we can influence the results of the sale. We gained our independence from Europe many years ago but it is now being taken back. Our ancestors fought so that we would have our land which could operate our business without the influence of foreign interference. This is not a typical company like google or purina, this is a company that stands for everything American.
jeeze sorry all for the typos,I just read what I wrote. This keyboard I have is a piece of garbage,some letters don’t want to take. I say we buy the foreign company that seems to have made it.
anyway, my point was AB has clearly been spreading their wings overseas and expanding in a manner appropriate to their business. No trying to cram themselves down everyones throat like I think Brito wants to do.
I don’t live in St Louis or anywhere close, but I pledge never to drink another AB product if absorbed by In-Bev. I know nothing about international business, but I do know this is not right. To look at those pictures of Anheuser and Busch, after 150 plus years of ownership in one family, THE American icon about to go to Belgian ownership, really makes me want to weep.
What is the big deal if a foreign company owns AB? The beer will still taste the same. I don’t understand either why so many people think that it will be bad for the St Louis economy. Besides a few office jobs there won’t be many jobs lost. Besides AB isn’t even in the top 10 biggest employers in the region.
No, InBev-owned Bud will NOT taste the same. They can only make a fraction to pay their debt financing for the deal if they just sell off the theme parks and can all the union workers, which they’ll definitely try to do. No, they’ll start skimping on ingredients as a means of cost-cutting. Bud won’t even be Bud anymore, regardless of whether they keep the U.S. breweries open.
Suck that Carlos! Go AB!!!!!!!
I bought a six pack of Busch (Aren’t those European mountains?) on Wednesday.
Since Busch is essentially a regional brand (unlike Bud, Mich, etc.) I’m savoring them now, because yep, Busch and Busch Light will probably be the first to go.
I’m just curious about one thing: when Daimler bought Chrysler, there was all this restraint of trade/worldwide monopoly, etc. concern with the politicos. Where is that now if Bud-Bev would make it a worldwide beer cartel? Whatever shenanigans InBev is pulling with suing (on the behalf of the shareholders) to dissolve the A-B board of directors– that sounds like something the FTC or the courts should be involved in.
Hey, I heard the other day that Pabst Blue Ribbon and Milwaukee’s Best were now on the list of chic beers in the same way that people smuggled Coors through Kansas in the 1970s.
If everyone who wants this deal to fail went out and bought a six-pack in support of A-B right now… a run on beer…a beer run…now *that’s* a revolution!
Sluuger, you slay me, you really do…
“Thanks to crooked wall-streeters, we now owe some foreigners more capital than they owe us”
I would LOVE to hear your thoughts as to the economic reasons behind this takeover bid by Inbev.
Companies buy companies all the time. Sometimes they are from America, sometimes they aren’t. Everyone is acting like this is the first American company to be pursued by foreign competition. It’s laughable.
To answer Kurt’s questions, yes to all. They are resisting a takeover bid, but in they can’t fend off Inbev they at least want to drive the price up. This was the expected move by both groups of anaylsts who were arguing the “drive up the price” side verses the “fight off the bid” side. This is Act 1. Act 2 will commence in the next few days.
People like Lisa can claim that we will all be working for foreign companies in 10 years, just like all those folks in the 80’s who said we would be reporting to Japan. Most of us, including me, don’t have the economic background to really understand the ramifications and long range affects of this deal. Let’s all read the experts opinions instead of forming our own ill-informed ones, shall we St Louis?
I believe it is a great thing that AB has rejected the offer. I hope that AB’s stockholder can resist this greedy European company. Please let’s reject them and give our support to AB and their plan to improve their company and keep it truly American
KEEP AMERICAN BEER AMERICAN.
A-B is American in the same vein as John Wayne. Legendary!
Never give in A-B!
Sure, they have not been the most aggressive in the last decade, but this may give them the wakeup call they needed.
I hope they never sell, I don’t want to ever see it - for St.Louis if nothing else.
Long Live A-B, i can close my eyes and smell the brewery right - ah, the smell of St. Louis - I Love it!
Can you imagine what Augie Jr. would have done?
First of all, Busch and Busch Light are not regional beers, they’re nationwide. Nor is Pabst Blue Ribbon, which is only a name and is contract brewed. Milwaukee’s Best is sold nationwide by Miller, which, my friends, was bought by South African Brewery several years ago, renaming itself SABMiller, right before Molson of Canada swallowed up Coors, to become MolsonCoors. So your Coors Light or Miller Lite are all foreign owned already. The talk by some of you that you’ll boycott Budweiser is just silly.
Why not everyone buy only Budweiser products so the stock shoots up so A-B is too expensive? You’ll be buying from the only large American brewrey that’s still American owned, helping local jobs at the STL brewery and the local distributors, and to boot we show those damn Belgians who’s boss. A-B’s share in the USA is under 50%, so if everyone went on a “buy only A-B” kick their sales would double and their stock would probably go to $100. Now that’s what I call a darn good idea that’s a win-win-win, for St. Louis, for A-B shareholders, and for the good ol’ USA!
OMG, James, you came up with the best idea I’ve ever seen on here! Now who can argue with drinking ourselves out of trouble?!? In all seriousness, what you came up is a great idea. Why drink foreign owned Miller, the beer sucks anyway? If everyone truly supports A-B they’ll buy up 3 months worth of Bud Light this weekend and store it in their basement, and they’ll pledge never to drink Miller or Coors or import products again. I heard A-B makes some pretty good craft and import type beers these days. I found out from a friend they make Landshark Lager, Shock Top, Sun Dog and all those Michelob specialty brands, which are pretty darn good because I’ve tried some. OK EVERYONE, LET’S SAVE A-B BY BUYING AS MUCH OF THEIR PRODUCT AS POSSIBLE. THROW A PARTY! HOW FUN! Just drive safely, guys!
I have to say I’m proud of AB. It takes guts to stand up to these foreign companies trying to take over our major corporations. I really love to hear these companies saying, “It will be business as usual!” I am a banker and have been through a few mergers, including Boatmen’s and Mercantile. In both instances, we were told, it will be business as usual. Enough said. St. Louis, stay behind AB!
Jim
I am ex-Boatmen’s…1993-1999, went through the mergers as well. And the sad thing is that was American companies that stuck it to St Louis. Of course, we didn’t seem to mind when we were buying Bank V in Kansas or Worthen Bank in Arkansas…
Tim, this economy is TOTALLy different from the 80’s. Globally, economically, internet/information/media, politically , etc. Everything is second to second, media can be mis-informed, distorted and people are so distracted they don’t care anymore. Companies are allowed to borrow billions with no questions/research, history etc and take out companies.
Please read up on InBev and how they came about. They can’t stop this machine of taking over because they will be out of business. His market share…..not so great…his stock not so great compared to what he is claiming he can do with his greatness of Inbev/AB. Anything he has acheived has been very costly and the payoff …..well you decide. Because you all will have to put your money somewhere and since some of you swear by by Inbev I know you will all invest ALL of your money with him!!! Right???
I don’t know, I do know this is on a list of very sad and very tragic endings to hard working individuals and companies (because there are many companies/individuals involved with AB’s success) that we as a whole just don’t seem to give a damn about. If we can’t rely upon ourselves who can we rely upon? Foreign interests? Yeah, how is that working out for us right now? Everyone screams for our help, the world looks at us for help, we go, get blasted in the end for not minding our own business. Just like AB, globally we are damned if we do and damned if we don’t.
I had a feeling this was gonna get messy. Although it’s not going to change the outcome, I hope it’s a spit in the face for Brito. After reading stories for the past week about him trying to fellate local politicians, I’m set that this guy is a total douche. He can take his “this is good for STL” rhetoric elsewhere.
Euro-trash go home. Soccer sucks anyway.
Why have you small-minder, provincial types reduced the argument to issues like ball-parks, jobs, corn growers, civic duties etc.?
This is abount QUALITY BEER.
Your local hero, A-B, brews the weakest bloody ‘beer-like-substance’ in the world. It is offensive to anyone who actually has taste buds.
On the other hand, Stella Artois is one of the finest beers available.
PLEASE, let this takeover happen and long live good beer.
The rest of you stupid NASCAR, Baseball, Basketball, no-tastebud Budweiser swilling fools can switch to Milwaukie or whatever.
Why have you small-minded, Saint Louis provincial types reduced the argument to issues like ball-parks, jobs, corn growers, civic duties, local politicians etc.?
Is it true that Saint Louis people always ask which Elementary and High School you went to? Does this may explain their small-minded attitude?
Well, I attended school on THREE DIFFERENT CONTINENTS and lets be frank - this is about QUALITY BEER!
Your local hero, A-B, brews the weakest bloody ‘beer-like-substance’ in the world. It is offensive to anyone who actually has taste buds.
On the other hand, Stella Artois is one of the finest beers available.
PLEASE, let this takeover happen and long live good beer.
The rest of you stupid NASCAR, Baseball, Basketball, no-tastebud Budweiser swilling fools can switch to Milwaukie, Schlitz or whatever.
Vive InBev!
Analysts had already surmised that In-Bev’s initial offer would go nowhere, that stockholders would hold out until the offer reached $70 a share. I think all we’re seeing here is a business negotiation…game playing on a corporate level. I would love to see A-B remain independent and stay in St Louis and business go on as usual. Realistically? Not gonna happen. If not In-Bev now, then someone else with deep pockets on down the road.
Mike Rand: you get it, it is about life styles, American as apple pie, car races on Saturday nights, sports of all kinds.
Inbev knows that brand will sell around the world because of the American icon we are. They don’t have that, we do, they want to buy that, the question is do we want to give it up.
American beer vs. Belgian beer, American will out sell.
Lisa, grow up a little. First of all no one loans a company billions of dollars without doing due diligence. To suggest such is irrational and unrealistic. Second of all, I would never sink all my money into one company because there is no such thing as a sure bet and if you don’t diversify your holdings you are setting yourself up for trouble. Again, irrational and unrealistic.
Stop flying off the handle. America is not going to be ruined if this deal happens. Yes, AB is a source of civic pride. Yes, they employee a lot of people in this town. We all know several I’m sure. But this isn’t risking our food supply, or water supply, or medicinces…it’s just beer. Inbev cannot abandon St Louis because there is too much infrastructure here.
Where was all this outrage when Macy’s stabbed St Louis in the back earlier this year, or when SW Bell moved to Dallas? Those moves will probably cost us more jobs in St Louis then the Inbev deal…
I belive Anheuser-Busch will eveually be sold. I also belive that witin 3 years they will move the corporate headquarters out of St.Louis and move us closer to a business ghost town.
all of you who really think that a-b is mounting a defense here are smoking. this is just a negotiating ploy to extract a higher price. dummy the IV will sell in a flash if the offer goes to $70.00. Hell, then he can replace that corvette he wrecked a few years back and get a bigger boat for the party cove. he doesn’t give a rats ass about the “peons”.
Ah Tim…can you BE any more self-righteous on a public blog!
GO AB!!! I am proud of them telling that little egotictical, GREEDY, greasy haired Brito to take his offer and stick it. His picture is next to weasel in the dictionary.
However, I feel it is just a move to get $70 a share.
The only hope I see is if AB can sell off non core assets quickly, thus removing cash that Inbev was going to use to pay back part of their loan.
People, these folks are selling dangerous drugs that have crippled american society in so many ways. Quit acting like this is legit and needed…these alcohol brewing companies. AB products have cost society more than they gave back.
Mike, until someones shoots down my argument or actually proves one of their comments is true, what else can I do?
I guess I will have to learn to like the taste of skunkie Miller products like my Chicago White Sox neighbor. I agree that business is business but the fleecing of America is difficult to stomach.
David The Brass Carrier - Get a grip. There is nothing wrong with wanting to kick back and relax with a cold frosty beer while watching a ballgame, or wash down some hot wings. Many of us have lost friends or loved ones to drunk drivers, but to make such a blanket statement such as you have is narrow-minded and prejudicial against us responsible alcohol drinkers. I’ll make sure I have a cold, frosty Michelob Ultra just for you at lunch.
Isn’t every stock down right now? So to say it’s the companies fault is unrealistic. I mean every American company is down right now. So basically every company is ripe for the picking. Where does it stop?
To paul, before you try to “learn to like the taste of skunkie Miller products like my Chicago White Sox neighbor,” you do realize that Miller sold out to foreign interests 6 years ago? How are they any different? Frankly, if this deal goes through (and it probably still will), we’re just shooting ourselves in the foot if we (both St. Louis and America in general) quit drinking AB products over this. Right now InBev is saying they want to keep all the breweries and keep STL a key asset. In other words, while the money may go out of the country, many of the jobs stay put. If demand falls here, the jobs will start to go, along with whatever commitment InBev has to St. Louis and America.
I could have sworn I have been reading about a horrible credit problem right now. I guess if this deal turns sour and Brito can’t pay I hope Belgium will bail him out so he doesn’t have to sell what little he will have left of AB in the U.S.
Who is going to buy BAC and PKG ? In this credit market? I worry for both sides of the table. Brito has to sell these just to scratch the surface.
As far as Macy’s and Bell? People were screaming and yelling, but too many people were asleep at the wheel. More jobs and more farmers, what the heck, just place them in next years unemployment numbers. It seems that this country is too near sighted.
Not flying off the handle Tim, I just won’t be the one who falls for this and is surprised/shocked etc when the curtain is pulled back to reveal what was between the lines.
Would someone explain why it took a takeover for AB to start acting on behalf of the investors? I thought AB’s responsibility was to ensure an annual increase in shareholder value? I do find it interesting that AB is publishing “their” plan of action, that just happens to be the exact same plan of action that InBev suggested. How can InBev devise a plan that is “horrible” when presented but when AB copies the plan it is the “Savior Plan”. Come on folks, it is just another business going to an international company due to a 25% discount to the Euro because no one is minding the value of the dollar….
IMHO, of course
I think Inbev only showed how he planned to pay back 50 billion. I don’t think he has showed how he will create great value for his incoming new shareholders yet.
Naw, good points Lisa, and I shouldn’t have said that to you by the way.
I just read the article online about ABs plan of attack. That is an awful lot of detail for just a postering stance. It sounds like they are really going to fight it.
What would help AB more than anything is for the dollar to increase in value against the euro. That is the #1 reason Inbev can afford to do this right now. I don’t see it happening given the continued credit crunch (which is the banking industrys fault, just like the recession caused by the S&L collapses 20+ years ago, but that is for another day).
I still don’t think an American company being bought by an overseas one is need for panic. Look how many Pfizer and Nestle and so on have bought…
It’s the (not so great) American YARD SALE! How much is our country worth?
This is what happens when free market capitalists insist that everyone else is ignorant of economics… while American brands hemorrhage their workforce, quality, profit, market dominance and ownership overseas. Ford? check. GE? check. Now, AB? Budweiser is as American as baseball and I hope marketing irony is not lost on anyone after this take over.
I invite everyone to boycott Inbev’s products (lists or brands are available on the net). Use the last tool of the consumer available in our rank capitalist system. vote with your dollars since SHARE HOLDERS will have sold you out.
Boulevard and Schlaflys both make excellent AMERICAN beers.
I can see it now. “Anheuser Busch, Belgium Europe.”
Lisa,
As far as the credit crunch goes that is basically here in the US most of Inbev bankers that are loaning the money are overseas banks. The banks and brokerage houses here in the US are in a credit crunch because of greed!! Does that sound familiar!
Peter,
The Inbev deal is a cash deal, no stock swap involved. This is why it is so attractive to shareholders. They don’t care if Inbev goes out of business the next day they have their nice profit and move on to the next target on their radar.
Tim
Did you find the complete AB plan?
ugh, the dollar. Stinkin’ politicians won’t touch that with a 10ft pole.
I have been trying in vein to find out how much Nestle and Pfizer paid for their takeovers. These have worked out. But my gut is not 50 billion.
This is a whopper amount.
No postering at One Busch Place. They actually have had Blue Ocean project for almost 18months (most of what you read today) BUT I thought my neighbor said 4 years plan. Now its just stepped up because Brito is huffing and puffing wanting to blow the house down.
It stinks anyway you look at it.
Tim, I say we start a blog on the dollar and how this credit problem is going keep biting us in the rump for the next 10 years. Maybe we may wake up a few people.
Just did some reading on the net, some “analyst” are predicting that Inbev may go as high as $75/share. The one analyst stated Inbev does not take no for an answer. The “analyst” said this approach would result in even deeper cost cutting.
Does this make any cents? (pun intended) Buy a company and then sink under it’s own wait.
I am not a great marketeer or finacial wizard but if they pay more than $70/share then it is what I suspected all along, nothing more than a big ego trip.
Unfortunately we are focusing on the wrong people. I worked at A-B for almost 20-years. The executives were extremely well paid and seemed intent on spending every bit of their respective budgets. During the late 1980’s and early 1990’s A-B tried to diversify away from beer and into entertainment, wine coolers, snacks and bakery goods. All of these are gone except for the entertainment segment. They also spent millions of dollars on an ill advised conversion to SAP software. Why do I bring all these items up? Continual miscues will eventually affect the bottom line and the stock price. The stock price has been stagnant for years. This scenario makes A-B (and any other companies) an attractive takeover candidate. The people in St. Louis should be critical of the senior executives of A-B not INBEV. Finally, the people who will suffer most from this will be the hardworking employees of A-B who have given their life for the company and looked forward to retirement. The executives will not suffer, they actually will reap the benefit of an INBEV takeover. Bottom line the rich will get richer, everyone else will suffer!
BigDave, you are so right when you say the rich get richer. America use to pride itself and prosper because of a strong middle class, Congress should put it is on the endagered species list. It is scary what is happening in this country right now.
I hope AB seriously considers the intangibles here. A sellout would have a profound impact on St. Louis - we would be loosing one of the few institutions that is truly our own. As a lifelong St. Louisian, I’m very loyal to AB products; if they aren’t available at the restaurant/bar/store I am patronizing, I don’t buy beer. I’d be willing to pay more for AB products if that’s what it takes to keep the company as-is … if AB sells out to InBev, it’s Miller time!
Valerie, unfortunately Miller is owned by South Africans and Coors by the Canadians. Not drinking AB products will not hurt Senior Brito. It will however end up costing the people who actually work to make the beer their jobs if people quit buying. The St. Louis brewery makes 16 million Barrels of beer a year. We will not be closing anytime soon. Unfortunately, we may not be making the same wages and benefits. That may be true whether InBev buys or not. For the Past 10 years August III has spent all his time trying to break the Unions down on Pestolozzi St. and driving the Pipe fitters out of the Brewery. Perhaps if he spent a little more time on the globals markets and expansion when every other major beer company was expanding BUD would not be in the situation. I don’t want to hear about overpaid union workers either. The crafts at AB are paid way under the current scale in this town. Big Dave is correct. Money and priorities have been in the wrong place and now its come back to bite. Maybe some of the fat over at One Busch place will get trimmed for a change.
A-B has nobody to blame but themselves for being in this situation. They had years to lock down the company to prevent a takeover bid, and never did it. When August IV arrogantly says, “This will never happen on my watch”, he knows he is helpless to prevent it. August IV knows THIS WILL happen on his watch, and he will be rewarded handsomely.
ab rejects offer…. all smoke and mirrors. The board members are trying to save face in the public eye, but I guarantee you that all they want is more money for the shareholders and themselves, and themselves.
When this is all said and done, the good news is you can all enjoy an actual good beer that is locally owned and made. Go grab yourself a Schlafly or O’Fallon and thank me when you finally realize that beer does come with flavor.
I live in Louisiana and this definitly affects us too. AB is the biggest purchaser of rice in the state. If InBev buys them they will probably get they’re rice cheaper overseas. Again putting more American’s out of work. Of course the oversea’s rice won’t be as good as ours. There is also a huge AB brewery in Houston. This will have far reaching effects beyond the St. Louis area.
It appears to me the negotiations are in full swing.
Teresa… Comparing this deal to Damilier buying Chrysler is insane… Chrysler doesn’t make the money now like AB does… Look at Ford, they don’t make crap… Why isn’t Lufthansa buying American Airlines???? Because they don’t make any money… I am trying to buy AB so I can come in, rip the guts out of the US workers and make cuts to make the shares go higher and then I can retire and not worry about you Americans! HahahahahWhaaaaHahahahaha…
What happens to the deal if the stock goes above $65 before this deal is done??? It is at $62 right now…
I’m with kdunlap….it can’t go too much higher or he will sink in too deep. Although if he truely is willing to show himself as a true egomaniac and he is going to get this company at ALL cost, well I think the banks may say different. I don’t think he can go too much higher.
Not to mention the hostile level at which he wants to play, is really going to leave a mark on his business
Budman–the market reflects the expectations that the deal price may go up. If the stock goes to $66 that is a signal that the shareholders expect InBev to raise their bid. It happens sometimes in takeover situations.
Lisa, I have to say, I don’t think you really know what you’re talking about with regards to how the takeover will be financed. They already have debt commitments to get them to $70/share; I’d be stunned if that’s all they could get. Plus, they could just issue more shares of their stock to get cash to make the acquisition in the unlikely event that a bank turns them down. Given that InBev already has the large financing commitments, it’s very unlikely financing will stop this deal.
I’m perplexed at how a company like InBev worth about $43 billion market cap, (about the same as Busch’s market cap) can go out and just get a $40 billion dollar loan. How are they going to pay back a loan of that size with the exploding commodity prices? This seems like a bad loan waiting to happen. Congress needs to investigate these questionable loans instead of having investigations after the loans go bad. What if the American people and especially St. Louisans are really turned off by this foreign raiding of an American Icon, and stop buying AB products? How are they going to sell the Great Brazilian Belgian Lager to the blue collar guy who might be turned off by the takedown of an American Icon by unwelcomed foreigners. I know other beer competitors are licking their chops at the upcoming opening in the market. Are these banks calculating these likely outcomes? I think BUD is buying time waiting for some good luck perhaps or holding out for a higher price. The day this sale goes through to the Boys from Brazil, I am switching to Sam Adams thank you very much. I don’t live in the St. Louis area, from another state. All of Cardinal Nation supports Anheuser Busch, whether they are from MO, IL, Arkansas, Oklahoma, Iowa, TN. Give’em hell Augie!
Frank–It’s not that hard to see why a consortium of banks would give InBev this loan. The beer industry is a business with very stable cash flows. The banks feels they can reasonably estimate their companies’ future cash flows and they will be more than enough to cover the debt. Commodity prices are rising, but beer makers have done a good job pushing through price increases. Remember than InBev will be paying this debt off with their profits as well as with A-B’s profits.
Generally, this debt contains covenants that control some facets of how InBev may run its business–can’t take on more debt over $X dollars, etc.
There’s nothing here that warrants a Congressional investigation.
I got a bud light in my hand,… Anheuser-Busch. Listen to me!!!!!! If you need to raise the price, do it!!!! I will pay and do whatever it takes to keep U in america made by americans!!
INVEB listen to me!! u better haul rear losers!!! this is Anheuser-busch were talking about. Made in america by americans!!! Go away LOSERS!!
Just a quick question. If the buyout goes through, all of us stockholders will have to pay capital gains taxes. Let’s assume that your stock cost basis is $45.00. The government will be taxing 15% of the $20.00 “profit”. This effectively reduces the buyout by $3.00 to a net sale price of $62.00. We all know that the stock market fluctuates a lot, but for these purposes BUD closed at 4pm today (6/27/08) with a price of $62.26. This means you would actually be losing $.26 per share. And I know some may argue that the stock wasn’t this price until the news of the buyout happened, but my portfolio value is based on now not then. And don’t forget that AB has one of the best dividends out there. Over the past 10 years, this dividend growth stock has delivered an annual average total return of 12.40% to its shareholders. The company has managed to deliver 9.60% average annual increase in its earnings per share through organic growth and share buybacks. Management has consistently bought back 3% of outstanding shares each year for the past 10 years, spending a little over $12.5 billion in the process. Without the buybacks, the growth in earnings per share would have been 6.60% annually. A lot of AB stockholders bought a long time ago and sat on the stock collecting a generous dividend, which leads me to the possibility that this example of a $20.00 “profit” is a little conservative. There are a lot of stockholders that will probably have to pay on $30.00 plus (-$4.50+).
Greg–the stock won’t be worth anything like $62 unless it gets sold, so the point isn’t really relevant. Besides, the majority of the stock is held by institutions who don’t bear the tax consequences of the decision (i.e. mutual funds).
A presidential election year with Missouri as a key battleground state. No the politicians won’t do or say anything about this? They will definitely stay away from this hot button issue? Right???? Obama is definitely not going to bring this issue up? Don’t these guys make the rules or something? If this thing drags out somebody will do something to stop it. If you want the presidency you will tell Missouri you are going to stop it. Period… Whether the promise will be kept is another story.
I am aware that this is a cash only deal Greg. I am fully aware of what is going here. I didn’t just pop in. But you mention stock from Inbev to help finance additions to his cash. I read early on in this deal that he was not going to be able/allowed to use any of his existing stock from Inbev/Ambev. This was hands off to him. There is a tipping point with the price. He can’t sell the farm so to speak for this deal as it would not be fiscally responsible for his new and existing companies.
kdunlap, I can’t say if it was the complete plan or not, but from what was covered in the article it sounded prety concise to me…
1 Euro = 1.559 dollars today.
It’s my contention that AB’s plan is simply that. A plan. Plans, like theorys, often don’t have the ability to be put into motion. If InBev chooses to go over AB’s head and solicit the majority of shareholders, then AB can flush all of the previously mentioned plans down the toilet.
Report the truth PD: Insiders including the CEO were selling the stock at 50/share earlier this year and now 65 is too low? Shipments of Budweiser in the U.S. have slumped 33%, to 24.6 million barrels last year from 36.9 million in ‘98. Only in a nation of overweight -lazy people is BUD making inroads by selling LIGHT beer, something that real beer lovers scorn. That is why BUD does not sell well internationally.
Only when “fast-junk” (ie McDonalds, BurgerKing, etc.) become more common elsewhere will BUD sell. Brito sees an obvious trend that IV prefers NOT to admit as his key to domestic growth.
Corporate Library, a group that offers independent critiques of companies’ corporate governance, gives Anheuser a “D” according to the brewer…up from the “F” rating the group gave Anheuser in April. Not only is nepotism an ingrained corporate strategy but so is reciprocal contracts with directors.
Thank You A-B, This Bud is for U.S. Keeping it American!
I hate to hear people say that InBev’s takeover attempt comes as a result of AB being poorly managed. Yes, they could have been more aggressive internationally however, there is no guarantee that this would have resulted in an above $60 share price. I work for a Fortune 500 multinational company which generates the majority of its profits overseas and our stock has taken a major beating in this current marketplace. My point — this takeover attempt is solely the result of a weak US dollar. AB’s board is correct. The current offer on the table is much too low. I hope the shareholders will allow the AB board to undertake its own “cost cutting” plan to add shareholder value.
If shareholders take physical delivery of their stock in certificate form, this would prevent hedge funds from illegally voting proxy of “borrowed” shares in favor of InBev or other hostiles.
http://www.claremontmckenna.edu/fei/events/2006sec/papers/Hu_and_Black.pdf
If the current “offer is much too low”, then why have the directors and other insiders been selling their stock at prices 15 points lower? Then why hasn’t the insiders been buying and attempting to take the company private when the stock was cheaper? A long laundry list of these failures can be easily supplied including that the weakening dollar is a greatly influenced by a culture that honors image over substance. Until USA leadership stops subsidizing lazy behavior via cheap money, subsidized & inefficient transportation designs, inadequate regulation, etc., even corporate insiders will fail to deal with the real issues.
What kind of contract does P. Stokes have with BUDman? Deal with the truth.
I don’t understand all this talk about “American companies” and “foreign companies.” AB became a global company when it started selling and producing beer overseas. Most large companies (and many small) are now global, so it makes sense that mergers and acquisitions are becoming increasingly global. Business is about competition and survival of the fittest. St. Louis shouldn’t rely on AB so much; it should do more to attract growing industries and businesses.
I think an InBev takeover is inevitable. AB is just trying to squeeze as much out of the foreign brewing behemoth as possible. InBev covets AB, and they’re willing to offer much more for the brand. Trust me, soon we’ll be calling Anheuer Busch “Inheuser Busch”.
The board at AB and especially Busch No. 4 are idiots. They should accept the offer now instead of holding out for more cash. The more In-Bev pays the worse it will be for the company down the road. Public companies should never be run by multiple generations of the same family. Just look at whats happened to Motorola and Ford to list a few examples. The Busch family failed the company and the share holders a long time ago. Good riddance to them after In-Bev takes over.
I’m shocked none of you replied to my earlier suggestion. Perhaps because it was buried in the 2nd paragraph of my comments. Here it is again:
Why not everyone buy only Budweiser products so the stock shoots up so A-B is too expensive? You’ll be buying from the only large American brewrey that’s still American owned, helping local jobs at the STL brewery and the local distributors, and to boot we show those damn Belgians who’s boss. A-B’s share in the USA is under 50%, so if everyone went on a “buy only A-B” kick their sales would double and their stock would probably go to $100. Now that’s what I call a darn good idea that’s a win-win-win, for St. Louis, for A-B shareholders, and for the good ol’ USA!
I have another comment about those who said they’ll drink Miller Lite or Coors if A-B gets bought by Inbev. Miller was bought by South African Brewery a few years ago, and they renamed the company SABMiller. Then Molson merged with Coors and they renamed it MolsonCoors. So if you switch to Miller or Coors, you are not only switching to a company no different than Busch-InBEV would be, but they have no breweries here, so it’s 100% counterproductive to do this. It would be like cutting off your nose to spite your face. Think about it!
I am very proud to live in a country that has corporations like Anheuser Busch Inc. That do not just rollover for foreign investors. Anheuser Busch is an “Iconic” American owned company that brews and packages some of the United States most desired and drinkable beers. Anheuser Busch produces the most sought after beers both in the United States and other countries. I will never drink another Budweiser, Bud Light, Michelob or any other Product that Anheuser Busch makes if a foreign company takes over our heritage brewer. (Or whatever InBev decides to call it if they win.) AB also owns 50% of Grupo Modelo (Corona), 27% of Tsingtao in China, 100% Crown International Brewer in India, Sea World, Busch Gardens and many other subsidiaries. They work hand in hand with their wholesalers also.
Hostile Takeover is not the answer here.
I agree whole heartedly with you James. We need to keep buying only Anheuser Busch products which in turn will keep the American dollar in America. I would think that this would be in every consumers mind right now. Our dollar is getting weaker and the entire time we are letting foreign companies gobble up our companies and sending the profits over to places like BELGIUM.
Keep our only AmericanBrewer here in America along with our hard earned money. Good job in protecting our shareholders best interests AB.
Buy BUDWEISER, BUD LIGHT, MICHELOB; buy Anheuser Busch products forever.
I don’t think the A/B board is holding out for a higher price, I really believe they would say no to $75 or even $80 a share. This company knows how to sell beer. Their marketing is second to none, their distribution system is excellent. I believe the board really wants to take this company into it’s next phase
People make the claim that they have been slow to expand, but I don’t believe the comparisons are equal, Inbev’s growth has come through acquisitions and mergers, they are not brewers, just a conglomerate of once independent brewers. The same is true for SAB Miller. A/B for the most part is expanding world wide using their own product line, building breweries in India, China, and I believe one planned for Mexico. The potential in China is staggering.
I hope they do make things too difficult for Inbev, because I believe going the “hostile” route would be a big mistake for Inbev, and detrimental to the reasons they want A/B, in the first place. Brand name, distribution, marketing skills and consumer loyalty.
To you that say that this company has been stagnant, perhaps, but it has payed increased dividends every year for the last 10 that I can remember. You don’t buy a stock like A/B for a quick buck, you buy it for long term investment. A/B made it through prohibition, depressions, and wars, getting stronger all the time, it’d be a shame for them to go down like this.
Regarding Britos’ open full page letter
What won’t change? Forgive us for being skeptical. The City and Region off St. Louis has heard all of this before. Boeing, Southwestern Bell, Macy’s (just to name a few) have all made similar pledges and appeals over the last 15 years. WITHOUT EXCEPTION, jobs have been lost, corporate offices have been closed/moved, and financial/ in kind support to the community has vanished. We all personally have been impacted directly or indirectly by these changes. Most recently, Macy’s promised to keep jobs here in St. Louis after buying May Company. To the contrary, in less than two years, Macy’s closed their corporate offices here in St. Louis. Why? There are many reasons: cost cutting and consolidation, St. Louis’ lacking the global prestige or advantages of a larger or coastal city, tax breaks elsewhere. etc. What was not a factor in these decisions was “time-honored institutions, and deep roots in the community” or a “long standing tradition of giving back to the community.”
No, what mattered was the bottom line of the corporation over the health of the community. And all the examples mentioned above were American owned companies. In the world of this global economy, do you really expect anyone to believe that your intentions are altruistic? That your allegiance is to a community over your share holders? In this, your reputation precedes you. If this were true you wouldn’t be laying the ground work for a hostile taker over. Take your best shot, but spare the insult to the community’s intelligence with P.R. stunts like full page ads promising everything and guaranteeing nothing.
It’s ALREADY changed.
Right on, Lisa!
We hear how great AB as an employer and corporate citizen. Still they sell beer so not really all that saintly. And when push comes to shove this comes to making money for shareholders. Now what is AB doing–selling aspects of the business…cutting jobs…trimming benefits–all to make people believe that the stock price will go up so they won’t sell to InBev. I guess now is all is boils down to is whether the enemy that you know is better than the one you do not.
AB is already changing for the worse–soon it will matter less whether InBev takes over.
If I had my drothers, AB would remain AB as it was and is–but since this cannot happen–I am left with no answers and I still don’t know what drothers are anyhow.
not sure how AB is changing for the worse as you say. It would appear that they are damned if they do damned if they don’t. First they are accused of being too fat and happy they deserve to be taken out. Then they announce a plan (that actually has been executed for almost 2 years) and now people say “too little too late”. People need to start backing this company because Inbev is NOT the answer. Inbev is run by accountants that show their profits at all costs. What AB announced to take care of the company is reasonable as Inbev would do worse because of the massive debt they will have going in.
Americans need to start pulling themselves up by their boot straps. Foreign companies are not the answer for future American profitability.
That the 15% staff cuts will come from early retirements is just PR hoosafudge! The reality is — a LOT of people will be laid off with or without an InBev takeover. That will most definitely have a trickle-down affect on St. Louis. It will be hard to stay loyal during the blood-letting…or should I say the “Bud”-letting…
A-B’s voluntary early retirement and POSSIBLE layoffs in the event not enough voluntarily retire as ALL COMPANIES have had to do these past few years, elimination of open positions, the same benefit reductions as ALL COMPANIES have had to endure over the past few years and stagnant stock that ALL COMPANIES have had over the past few years is NOTHING COMPARED to the CUTS that Mr. Burrito will incise into the company, the city of St. Louis and every city that an A-B brewery resides in, every farmer that sells to A-B, every vendor that depends on most of it’s business from A-B, every donation from A-B, (should I go on???) should he get his hands on it. I say if greedy shareholders have no more integrity than to sell out over a few more dollars per share after taxes then just sell now to anybody else but this guy…
I’ve been following this story for two reasons. First, some of my family is relocating to St. Louis next month. Second, because this selling of American Industries has impacted two local economies in which I have lived. I lived through the decline of the steel industry in Pittsburgh and witnessed the aftermath of the flight of the textile mills from South Carolina. The reason I am following this story is to see if the board at A-B will actually try and keep the company American or are only holding out for a bigger payoff. I hope it is the former. With the weak dollar, we need to be investing in real jobs in the country - actually making products. We cannot survive as a service economy. A-B and their investors would do well to think of the long term of their company, their city and this country and keep it American. The quick buck mentality of most executives work great for short term profit, but do far greater damage to the overall value of this nation.
Carlos Brito for President?
Carlos’ full page ad in the paper looked like an ad for someone running for office. He promises nothing will change, where have I heard that before. He makes promises he can’t and won’t keep. He sure could not keep his promises to all the Canadiens he layed off. Carlos and Unbev we are exprienced in this game you are playing so don’t lie to us like our politians do and tell us nothing will change.
It amazes me that there is more activity over this than the Chrysler lay-offs. AB being taken over by InBev *could* mean the loss of a few hundred jobs… Chrysler is putting almost 2500 people out on our streets. 2500 people who are going to have trouble finding jobs like the ones they had. My heart goes out to them - but then I see people still bickering over here. Get real people. Stop wishing for what used to be, and start thinking about how this region needs to attract new companies that are prime for real growth - not just hold on to the old world companies. That’s always been the problem with this region. Short-sighted and content with the status quo, only to get caught flat-footed when the future arrives.
Those of us on the inside know that the cuts are real and were about to happen soon regardless of InBust (just in case you have not noticed their stock is down 44% since October 2007). The next generation of managers have been well trained and ready to assume position. True that some of the most talented will be, are, retiring, however orderly and with class.
Vince, Chrysler is horrific. No one is disputing that. Most of us here having been trying to wake people up to what is going on. One by one a foreign company comes in, takes over, lays off, takes profits etc. You know the rest. YES, there are some success stories. But in the above post from BB that pretty much sums up what we have all been saying. Britos history speaks for itself. My personal belief and I sure some will agree that Chrysler is a perfect example of what Inbev can do to AB. Daimler did not do anything good in that deal except send the profits back overseas to fix their ailing Mercedes problems. And the dumped Chrysler. And by the way, all the money that Fenton gave in tax breaks, I am guessing Diamler took that too??
We don’t need a bunch of foreigners controlling a major St. Louis company. How long do people think it will take before they move the headquarters overseas? And how long before everything associated with AB goes downhill?
The layoffs are REAL…not “POSSIBLE.” Every department head has been asked to cut headcounts by 15%…regardless of how many people are eligible. Most of the eligible people I know have said they aren’t very tempted by the early retirement offer. So…it’s gonna get ugly…and then InBev will eventually gain control because they have the financial muscle. So — AB employees will be hit with a double-whammy…first the “blue ocean” from within…then the red ocean from Brazil (Belgium…but really Brazil). Count on it.
I promise this, If inveb does figure out a way to take over anheuser-busch, sales will drop, AB has a very loyal following in the south because they are american owned and american made, I live in the south, ever hear of NASCAR? The south will rise again and boycott those inveb jerks!
AB is not an American, Busch family company. It is a global company that is owned by the shareholders. AB has more employees in Asia than it does in the city of St. Louis.
Sorry Homer Jay but you are wrong, The job cutting will not come from layoffs, they will be from attrition, not filling openings, and be early retirement. The early retirement is going from age of 60 to 55 where it use to be. And if anyone knows anything the retirement package is very good. For that matter anybody who retires from the brewery retires well. The reason some of the older guys do not like it is that they are happy to be making thirty dollars an hour. So trust when I say the only whammy will be if Inbev gets control then you will see true layoffs.
SaveAB
job cuts will come from early retirements, not filing positions, and LAYOFFS..yes layoffs. Each department has been asked to look at contractor positions and positions in general. And THEN sadly when/if Brito takes over he will throw more out through streamlining depts that Inbev has in Belgium and outsourcing what he can overseas.
Yeah, my prediction of this deal in several years will reflect what Chrysler is going through right now after what Daimler did to them. When Brito has crammed all of his Belgian/Brazilain beer down the worlds throat at AB’s expense he will be done and need to move on. (also true of AB products that not everyone has a taste for and thats OK, thats why AB has been careful where they branch out to)
I have not heard/read anyone say anything good about Inbev as far as workers statements on other sites. All the quotes from employees on Inbevs website state how they love thriving in a
meritorcratic environment focused on delivering results. This company will give nothing back to anyone.
Shareholders short attention span these days (all, not just some) are going to be the death of all companies. All stocks are rocked right now, everywhere.
America is for sale and if you are NOT for sale you will be forced to.
At all costs.
The Though of “InBev” stadium and makes me sick!
Lou
Happy Birthday America !
You don’t mind if we buy you GREAT AMERICAN BEER COMPANY, do you? Why would you ? We already make your cars, your clothes, your toys and your electronics. We own your supermarkets. We own your power companies. So what’s the problem with owning your BEER companies. As a matter of fact we already own most of them now. We just want the other 50%. It’ll be no worst then us owning the oil companies. As you know some money stays with you through your shareholders. Think of the billions that will be made by your BUD share holders. I’m sure that when we start downsizing, these good people, in the true spirit of America, will help the thousands who will lose their jobs. Please don’t fear when I talk about lost jobs. Not all will lose their jobs, we’ll just have to make some cut backs to show profit and help our new shareholders. After all that is our goal. Money for our shareholders. Once we dry up BUD and the profits sink we’ll dump it to get a boost in the market, just business. A win, win situation. So, Happy Birthday America ! Enjoy your last July 4th with a TRUE AMERICAN LAGER!
Oh, by the way I forgot to mention, we’re also buying up you housing market. Thank God all the rich Americans like keeping money in vaults. Our greatest fear is that several of them would take their BILLIOMS and help your people with some loan assistance program. I shiver at the thought.
abandon, ye protectionists, and enable the free flow of capital…consider this: there are already plenty of foreign bud stockholders, and there are even more american stockholders of inbev…managers do not own companies, they work for them…bud mgmt has defaulted and returned little stockholder return over 10 years…it’s stock has languished while inbev’s has soared…it’s time…welcome inbev, or anyone who can get bud off of square one…it’s not 1995 anymore…
why is everyone concerned about the afermath of this takeover? Statements of future growth, better market share, better earnings, welcome Inbev, get Bud off of its sorry rear end and into the global world. This is a cash only deal for stockholders. No stock involved. Do you think most of those shareholders are going to flock to buy Inbev stock? I wonder. Like I said the short attention span of sharholders these days is what is rocking the stockmarket and companies.
The only people who are truely concerned about this takeover are the ones concerned for the multiple cities and states and beyond that will be affected by this. It seems plenty of people have been happy with AB until cash was thrown in their face. If they were so unhappy why didn’t they sell last week/month/year?
But what the heck its just another company that will be sending its profits/and jobs overseas.
Lisa
Layoffs are not part of the plan.
to make myself clear layoffs are not part of A-B plans. Inbev I have no doubt that their will be layoffs.
It needs to be knowed that people who invest their money in stocks in any company gave the company the capital to invest in equipment,materials,building,labor etc. to run that bussiness.The investors do expect a return on their’s investment.Even though I would hate to see AB taken over by In*vest-Bev I could understand why.It’s all about the Benjamins(MONEY!)
Don’t worry, if AB is bought their standard products will continue to taste as insipid as always. If you don’t like foreign ownership of breweries you better switch to micros, but that won’t happen because hops an flavor are the only things the drinkers of products from the mega brewers fear more than foreign owernership.
Don’t like foreigners buying american companies? Then you should do your best to buy american products to prevent the dollar from being driven down. I suspect the biggest complaints on this merger are from those who invariably do most of their shopping at walmart and drive suv’s, an excellent way of transferring your money to china and the arab oil states.
AB is public company but was being run like a private company. The busch family owns less than 5% yet two of them are on the board? And the rest are a bunch of buddies. Too bad someone didn’t tell them when you sell off a controlling interest, or the corp. isn’t organized in such a way to prevent a takeover, the company is vulnerable. Looks like their cockiness made them believe they were to big to have to worry about such trivial matters.
The workers on the line, drivers, etc. have a lot less to worry about than some of the salaried people in management. Middle and upper management jobs will be lost, but upper management will come out very well and make a lot of money. I suspect most of these guys who are towards the end of their careers are rooting for the takeover.
St.Louis will suffer with the takeover. There’s no way the merged company will make as many charitible contributions to the local community.
InBev’s bid for A-B is not about the evil foreigners buying a piece of America as much as it is bout losing a valuable asset and placing into the hands of a company not well known for its treatment of its employee’s or for that matter its treatment of the communities in which it does business. Anheuser-Busch is an asset, not only to the Shareholders, but the Stakeholders as well. What ever happened to investing for the long term? A-B may have slowed their growth over the past few years, but that is the nature of the market. They certainly have not tanked and will continue to grow the market share. If you think A-B is holding you back from making a big profit you should sell now, GET OUT, take the money and run. Hey, and take Adolphus with you, he’s looking for a place on someones Board of Directors, maybe Carlos will take him when he leaves…
Suzanne, thank you!! Everyone needs to see this problem. Foreign TAKEOVERS are NOT needed and not the answer. Adolphus Busch is a pitiful scorned step child. He was courted early on by Brito and he bellied up to Inbev’s bar. Now he can “one up” his blood brothers/relatives by selling out and make a name for himself. Selling to Inbev will kill AB brands and ultimately the company. Brito wants AB to choke the world on his products that is not wanted nor needed. AB stockolders beware and Inbev and future inbev stockholders beware. This is NOT a win win situation
The Busch family has been very very good to the city of st.louis as well as the entire country. However, they have not been aggressive in the world beer market. A-B has allowed its competitors to build larger, more aggressive organizations. At the same time, A-B has gone about purchasing small portions of brewers, so as to have a small position internationally.
Additionally, a publicly held corporation board should not be connected to the parent company. The board should have the best interest of the stock holders in mind, not the company. This has not been the case at A-B.
Good luck to the Busch organization, but I think they are just forstalling the inevitable.
By supporting inBev, Adolphus IV has become to the Busches what Fredo was to the Corleones.
If AB sells out to this foreign company I wager that millions of lifetime, loyal Bud drinkers like myself will find a new product to enjoy. I am angry and I feel betrayed and so should St. Louis. It will be a sad day for the city of for all of the Budweiser lovers.
Well, now that the offer seems to be up to $70/share, A-B and InBev seem to be getting along much more chummily. So congratulations, AAB-IV! Hope the extra $5/share is worth becoming Carlos Brito’s bitch.
I used to think AB was sincerely trying to fight off the takeover but I don’t think so anymore. I was at a local bar in the Tower Grove area last night. The type of bar where Budweiser signs hang everywhere and they have Cards game specials. A typical St. Louis bar. Well a bunch of slick Bud Light reps came in giving everyone Bud Light schwag. My friends and I took some and were chatting with the reps when one of my friends said “Boo InBev” and all of a sudden ALL the Bud Light reps starting arguing with us, saying we should support the takeover and it got pretty heated. They were yelling, we were yelling. We gave them their promotional items back. I was so shocked. I felt like the enemy slipped in the back door. I can’t believe AB reps would go around promoting the deal like that. I’m more disappointed than ever in AB and the incident only furthers my resolve to not buy AB products if the takeover happens.
shocked in south city……its called protecting their J.O.B
Boycotting will only hurt the breweries worse once this takes over. Slowing sales means more cuts and or shut downs.
Maybe Warren is helping things along. Time will tell.
I hope they change busch to INBEV stadium after the sale of AB.
SOmething about this current change of events just isn’t right, according to the Financial Times A/B had the deal with Grupo Modelo completed except the signing, this was just week before the 4th of July, in fact they seriously considered announcing the deal right after the holiday weekend. Now they are in talks with Inbev??? Something is still going on here…just can’t figure out what. Any ideas??