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07.13.2008 8:14 pm

Anheuser-Busch sold to InBev: Good deal or bad?

St. Louis Post-Dispatch
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Early Sunday evening, news broke that Anheuser-Busch Cos. directors accepted a $70 per share takeover offer from Belgium’s InBev.

The new company will be known as Anheuser-Busch InBev.  Will this be a good deal or a bad deal for St. Louis region?

545 comments

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Initially, “The Powers The Be” led us to believe this was a bad deal for AB, for St Louis, even for America. I fail to see how any of this changes just because the selling price is now $70 per share instead of $65.

— suzyjax
7:38 am July 16th, 2008

well, well, well. AB had a deal with Modelo and hesitated because they didn’t know if they could afford it and didn’t know if it would stop InBev. just another case of not being able to pull the trigger by this inept management. did they ever hear of at least trying. worse thing that could have happened is what happened. don’t blame brito or InBev. Looks like the CHICKENS were roosting right here in our own hen house.

— waldo
8:05 am July 16th, 2008

Why was it not a merger rather than a buy out? Combine the two companies as it now. If you have $100 worth of A-B stock you get $100 worth of new company stock. If you have $100 worth of In-Bev stock you get $100 worth of new company stock. You have a one company now owned by the previous shoreholders without a 50 Billion Dollar Debt. I guess it came down to who could pee the furthest.

— jim63129
8:10 am July 16th, 2008

Waldo, nope I think they are just fine, but with mounting lawsuits (greed)
expensive debt for Modelo, makes for the greedy stockholders(big players) to bring on more lawsuits and the everyday stockholders jumping on the bandwagon of SELL, SELL, SELL !!! Damned if you do damned if you don’t.
Stockholders, lawsuits, hedgefunds, credit problems did not help AB.

Suzyjax, this isn’t going to be good, but a corporate raid/hostile takeover (”friendly” is laughable) leaves nothing to say but “its all going to be good,great, wonderful.

Brito mentioned yesterday that the Blue Ocean project seems to take care of a lot of things and “When you look from the outside, you don’t know everything that an insider would know,” they saw the plan had not been slapped together at the last minute or imposed from the top down without details.
I have said all along he knows nothing about this company. His ego has led him to believe that AB needed to be saved from themselves and AB has done nothing to trim expenses, re-tool, continute to evaluate and all the while try to make employees happy/do what is right.

He wanted his steak and lobster dinner PLUS the ice cream with the cherry on top. Now he has to chew, swallow and not choke. Yes there are always ways to make things better, but if this proves to be too much for him to handle, the brand, the company and MOST of all the employees will pay.
He is known to confuse fat with flesh.

He better come out and come out quick with his “grand dream” of how this is going to work because he has a company with people all over the U.S with an extreme case of the jitters, stockholders that are nervous, and a lot of people who may not want to invest in his new company.

My take on the merge vs. takeover…..Brito answers to nobody.

— Lisa
11:26 am July 16th, 2008

St. Louis just got exactly what cities in other countries have been for years, GANKED! US countries have for decades if not centuries have been devouring companies outside the US. AB was ready to do it to Group Medelo. Buying the rest, and getting rid of employee’s. Its a shame this has happened but its chickens coming home to roost.

ABIV could care less about the company, he and the board just waited until the price was right. Notice how quickly the tune changed when Inbev raised the offer and threatened to get rid of the existing board.

The Ugly American at his best. Would sell his own soul just for some more money.

— John C-Toasten
12:44 pm July 16th, 2008

what annoys me is that AB IV keeps saying his responsibility is to the “shareholders.” i understand that on an intellectual level, but shouldn’t his responsibility, as CEO of the company, be to the over thousands of AB employees around the country (and the world, for that matter)?

a small group of shareholders walks away with a ridiculous amount of money, and the people who made AB perhaps the greatest american corporation ever are left in the lurch.

— doug
12:47 pm July 16th, 2008

D. Walker–I’m telling you the reality I deal with on a daily basis in a job where I hire people with H1-B visas. I don’t have enough qualified Americans who have the education or work experience. There really isn’t such a thing as an unemployed American in my industry–if you have a pulse and a clean criminal record, someone will hire you. It is an industry-wide problem common to many math and science based occupations.

jim–Management may have wanted to do the Modelo deal. You’re speculating that they are the ones who had control over this situation. The shareholders dictated the outcome here, not the Busch family. They told them to get a deal done. It didn’t matter to them if Modelo was available or not.

A-B should not have tried a merger of equals. Their shareholders would have lost the buyout premium in that case. It’s not a very good idea to turn $70 of cash into $50 of a new stock. Big investors weren’t going to do that. Once a buyout offer is made, the merger of equals option is usually off the table–shareholders aren’t idiots; they aren’t going to turn down money and still give away control of their company.

Doug–CEOs serve at the leisure of the owners of a company. A-B’s shareholders are ABIV’s boss. Auggie had to do what they told him to do, or he wouldn’t have been the CEO anymore–with or without a sale.

— Paul
1:09 pm July 16th, 2008

I have question that You have to think about .
When an American buy’s a French winery in France will the American make French wine there or American wine ?

In my perception the wine the American makes is French am I right or wrong ?

So if a Belgian brewery multinational buy’s a American brewery the beer stay’s American (Bud , Bud-light…..) so Budweiser still will be an American Brand made by Americans for Americans and other nationalities on this planet.

You can not buy or sell a herritage or history .
Who knows whitin a few Years the whole Anheuser-Busch Inbev group can be may be back in American ownership .This is the price of (world market) freedom where You Americans fight for.

Budweiser is an American Brand and one of the BEST lager beers in the whole world You should be proud to make such a beer .
BUD is KING of beers (even after the take over).

Sincerly Yours
A Belgian that likes the USA very much , drinks BUD and do not like Stella or Becks.( I and hate Inbev because they rices prices of beer here in Belgium)

— Geert
2:01 pm July 16th, 2008

Tell you what if it is a company who is looking for highly skilled computer programmers, IT, computer engineers, post your company here because I personally know many who can only find work with contractors who do not offer benefits.

I know many of these workers who are replaced by foreigners with HB1 visas.

People like yourself, Microsoft, and Illinois Bell are full of crap with you say you cannot find qualified workers. I know qualified people who apply for these jobs and never hear back.

What type of workers are you looking for? I can find your qualified workers.

What a load of garbage. Many of these jobs such as telemarking etc..and telephone sales that HB1 workers are now filling, a freakin monkey could be trained to do the work.

— D. Walker
2:26 pm July 16th, 2008

Furthermore Paul,

This is the same kind of propaganda that the unions used, but their was, we can’t find Blacks to pass the entry test. Garbage!!!

Soon, just like the union construction industry, companies like yours with all your lame excuses and unwillingness to do right by people here, you will fall too.

It was done first to Blacks, now look White America, it is being done to you. It is wrong and coming from the wrong heart set. I just hope people will learn and see.

I challenge Paul to state what kind of job openings that his company have that he can’t find qualified workers for. Think of it as free advertising for your company Paul.

— D. Walker
2:35 pm July 16th, 2008

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