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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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I was always so proud that no matter where I was in the United States, after an AB beer commercial I’d hear “Anheuser-Busch Incorporated, St. Louis, Missouri”. Now I guess it’ll be “Anheuser-Busch-Inbev Incorporated, Belgium”. HUGE loss for St. Louis. HUGE. But at least multibillionaire Warren Buffett profited by about $300,000,000.

No A-B-I products for me. I buy AMERICAN whenever possible.

— Wayne
10:44 pm July 13th, 2008

ONLY THE BIG WIGS WILL GET THE $70/SHARE–ALL THE LITTLE OWNERS WILL GET WORTHLESS IM-BEV STOCK. SINCE WHEN IS IT LEGAL TO DO BUSINESS WITH CUBAN COLLABORATORS? DOESN’T THE SEC OBEY THE RULES ANYMORE? WHO’S GOING TO BUY THE REAL ESTATE TO PAY FOR THE LBO?—ALL THE DEVELOPERS ARE BROKE. GOOD OLD AUGGIE SAVED THE COMPANY IN THE LAST DEPRESSION–THE GREAT GENES WENT TO THE GRAVE WITH HIM.

— Mary Rene
10:44 pm July 13th, 2008

Although I left STL many years ago, this is another example of another company leaving STL. I left because the opportunities no longer existed here, the mind state is ultra-conservative, the STL region as a whole does not operate functionally (cite the 92 minicipalities)and the tax structure and 1% earnings tax does not fly in the world of business. STL has once again failed, and with the last real corporate gem the city has left, this will be a tough blow and could be the final nail in the coffin for the city.

Why you ask? Wait and see how many jobs Mr Carlos Britta cuts, he is known to Wall ST as the “Euro Butcher” all the corporate tax dollars, the huge salaries, the taxes paid will now flow to InBev in Belgium. I am glad this has happened, I own several thousand shares of AB, and as a shareholder, the have a right to seek the most return for my money. $70 a share is an early xmas gift for me in the horrendous stock market, I will take it!

Also, AB never hired my immigrant family members, their friends, nor their offspring due in part to the typical STL nepotism as in what goddamn high school did you go to, or did your realatives work here at AB? I say good riddence and give me my goddamn money.

— FuxksGood
10:46 pm July 13th, 2008

Well so much for a great American icon. Now every time I go overseas and see Budweiser truck or logo, I’ll have to think of the shareholders who sold it out. Nice try though, Augustus. Guess you are not as powerful as you thought you were.

— Carlos
10:47 pm July 13th, 2008

Did the St. Louis economy die when McDonnell Douglas sold out? What about when May or TWA sold out? A-B employed 6,000 people here in a town where somewhere around 1.5 million of us work. Let’s be realistic about the impact this will have on the local economy.

I would imagine Chrysler just fired as many people as A-B will let go.

This new Detroit talk is just ridiculous. Have some pride in this city and its economy.

— Paul
10:48 pm July 13th, 2008

Capitalism is what America was built on… so the selling out of every last American icon is nothing short of… patriotic! All these unhappy comments are just Red Flag waving liberal socialists trying to undo the workings of our great nation.

Personally, my stock went up: I’m rich beotch!!!

— Owen
10:49 pm July 13th, 2008

this is a great thing, the old hierarchy at A-B was allowing it to slip into a lull of quality, InBev will clean house and right the ship

— ForeverFlyer16
10:50 pm July 13th, 2008

Rich Martin, I admit, all the brewery and brewery division mergers are damn confusing. But I want to clarify that MolsonCoors is NOT a joint venture. Molson and Coors merged and became MolsonCoors, and they changed their name as a result of the merger. Perhaps you got confused with the joint venture that MolsonCoors and SABMiller just formed last month. The joint venture is a 50/50 owned subsidiary that will operate the breweries and marketing of both MolsonCoors and SABMiller brands in the United States only. But the point is, the joint venture is owned by these foreign companies that own the former Milwaukee-based Miller Brewing and the former Golden, Colorado-based Coors Brewing Company. The joint venture, a subsidiary of MolsonCoors and SABMiller, is called MillerCoors. The name sounds American but it’s nothing but a subsidiary of foreign-owned companies MolsonCoors and SABMiller. These companies have such a tangled web of foreign ownership, one couldn’t call them American companies by any stretch of the imagination.

The Coors family does NOT own their brewery, as you say. It is owned by MolsonCoors shareholders, a significant portion of whom are foreign because they owned shares in Molson Brewing Company before the merger. According to MolsonCoors.com, “insider” ownership of MolsonCoors totals a whopping 1.4% of total outstanding shares, about $167 million dollars worth of stock. The “insider” ownership includes not only the Coors family but Molson family members and all key corporate executives of the company. Therefore, the Coors family owns but a miniscule percentage of MolsonCoors stock.

While A-B is worth about 4 times that of MolsonCoors, August Busch 3 & 4 alone own over $300 million of A-B stock, (valued at the current $65/share), according to anheuser-busch.com. When you include their options, they control almost $800 million worth of the stock. So when you say that the Coors family owns their brewery while saying that the Busch family doesn’t have much of a stake in A-B, your statements simply are not based in fact.

— Scott
10:51 pm July 13th, 2008

the brewery chose not to expand when others did world wide–and the stock’s performance wasn’t that great growth wise.
i didnt want to see this happen.
but it is ab’s mgmt that let this happen.
it is not an evil foreign company that did this.
st louis is a great city, and hopefully things will be ok.

— spi cards
10:51 pm July 13th, 2008

Its a sad day in history people, all I can say is hello Sam Adams. I see a huge boycott coming on, and a big hit for In Bev. help keep our beer in the USA and lets find away to reverse this.

— Rich
10:51 pm July 13th, 2008

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