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.
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.