Kevin: If there is going to be a merger, wouldn't it make more sense for A-B to acquire In-Bev? While In-Bev is larger, I believe A-B is in better financial condition to make a purchase.

dnicklaus: As I've mentioned earlier, Kevin, it would be tough for A-B to make a run at InBev. The Belgian/Brazilian company has a complicated ownership structure, involving some family trusts. It also would be hugely expensive deal for a company using a weak currency (the dollar) to buy shares that trade in a strong currency (the euro).
There are a lot of ways to measure financial strength, but InBev is by no means a weakling. Its 12/31 balance sheet shows less long-term debt, and more shareholder equity, than Anheuser-Busch's.

Carol Dungan: And how will this help St. Louis? And my family, because my Dad worked at A-B retired from A-B in the 70's and now my husband works for A-B

I do not want to see this happen at all

Thanks

dnicklaus: Thanks for your comment, Carol. I'm sure you speak for many other St. Louisans as well.

John Jacobsmeyer: How has Anheuser Busch, more specifically, August Busch 111 & 1V, set themselves up for a position for a hostile takeover? Wouldn't greater ownership of their family's 155 year business been the more appropriate situation? Thanks

Jeremiah McWilliams: John, it's hard to say. The Busch family has actually been able to exercise a massive amount of influence for years, despite not owning a controlling stake. They've built up a lot of credibility as brewers and beer marketers, so shareholders have gone along with the succession without too much of a problem. (It also helps that A-B has bought back a lot of stock and bumped up its dividend to keep shareholders happy).

So how did we get to this point? A-B sat out on a wave of consolidation that created global beer behemoths like SABMiller and InBev, both of which have passed A-B in size. A-B is very dependent on the U.S. -- to a much greater extent than SABMiller or InBev -- but it has not grown fast here for several years. Executives have acknowledged that the best defense against a takeover is to grow faster, but that's easier said than done. Because of the weak dollar compared to the Euro, InBev has additional heft right now that it could bring to bear on A-B.

The company has also let go of a number of takeover protections, like staggered board elections. I am told that next year, the entire board will be up for re-election. Thus, it's not easy to beat off a generous takeover proposal.