Anheuser-Busch Receives $46B Buyout Bid
Belgian Brewer InBev Delivers Unsolicited Bid For Nation's Biggest Brewery
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Anheuser-Busch, the brewers of Budweiser, recieved a $46 billion takeover bid from Belgian brewer InBev SA. (AP)
The maker of Budweiser beer disclosed late Wednesday that InBev SA, whose brands include Beck's and Stella Artois, delivered an unsolicited all-cash bid of $65 a share. It's unclear whether senior Anheuser-Busch executives think the deal makes sense, but shareholders may be drawn to the offer that represents a sizable premium over the company's closing price of $58.35 Wednesday.
If the deal goes through, it would create the world's largest beer company and mark just the latest phase of consolidation in a global brewing industry that is facing rising ingredient costs and stale demand in the United States.
"Anheuser-Busch said that its board of directors will evaluate the proposal carefully and in the context of all relevant factors, including Anheuser-Busch's long-term strategic plan," the company said in a statement. "The board will pursue the course of action that is in the best interests of Anheuser-Busch's stockholders."
A spokeswoman said the company would not comment beyond the statement.
InBev Chief Executive Carlos Brito said the deal would boost both companies, giving InBev access to the U.S. market while expanding Anheuser-Busch's reach overseas.
"We have the highest respect for Anheuser-Busch, its employees and its leadership, who have built the leading brewer in the U.S. and grown the iconic Budweiser brand. Together, we would draw on the collective expertise of both companies' management and employees."
Shares of Anheuser-Busch soared 7.6 percent to $62.80 after hours, when the announcement was made. They had risen 2 percent in late-afternoon trading, when rumors of the deal were reported on CNBC. Speculation has been rife in recent weeks that the deal might occur.
Opposition to a potential takeover has already been fierce in Anheuser-Busch's hometown of St. Louis, and elsewhere in the U.S. The brewer employs 6,000 people in St. Louis, and many workers are worried InBev would cut jobs as the companies consolidate.
Web sites have sprung up opposing the deal on patriotic grounds, arguing that such an iconic U.S. firm shouldn't be handed over to foreign ownership.
"I am strongly opposed to the sale of Anheuser-Busch, and today's offer to purchase the company is deeply troubling to me," Missouri's Republican Gov. Matt Blunt said in a statement.
InBev was formed in 2004 when Belgium's Interbrew merged with South America's biggest brewer AmBev. Since then, the company has cut jobs in several European countries while its sales were boosted by strong demand in Latin American countries.
Worries about job cuts at Anheuser-Busch could be justified. InBev has a reputation for squeezing costs out of the companies it acquires, said Benj Steinman, editor of the Beer Marketer's Insights trade publication. Because of its size - and control of nearly half the U.S. beer market - Anheuser-Busch could be a ripe target for cost-cutting.
"One theory is that their own cost reductions are winding down in Europe and Asia and around the world, and they need somewhere to sort of implement what they're best at," Steinman said.
InBev tried to allay those fears Wednesday, saying it would not close any Anheuser-Busch breweries and would make St. Louis the headquarters for its North American division. The company also said it would invite some Anheuser-Busch directors to join InBev's board.
Anheuser-Busch executives have made cost-cutting a goal over the last two years. Sales in the United States have been stagnant as consumers turn toward wine and cocktails, and the rising costs of ingredients have bitten into profit margins.
Last year, Anheuser-Busch turned a profit of $2.12 billion, up nearly 8 percent from $1.97 billion in 2006. But its core brands of Budweiser and Bud Light continued to lag as sales of craft beers and imports rose.
While the InBev deal looks sweet on paper, it's far from a sure thing. InBev said it plans to pay for the deal with $40 billion in debt, and raising so much capital could be tough as banks tighten their standards during a global credit crunch.
InBev's statement said the company has "strong support" from a number of financial institutions, including Barclays Capital, Deutsche Bank and JPMorgan. The company would pay for part of the deal by divesting some "noncore assets" along with equity financing.
Opposition to the deal is sure to be stiff in St. Louis. A new Web site called SaveAB.com offers visitors yard signs and bumper stickers to express their distaste for the purchase.
"Like baseball, apple pie and ice cold beer (wrapped in a red, white and blue label), Anheuser-Busch is an American original," the site says.
© MMVIII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.



SOLD !!!!!!
Cindy pays the bills at the McCain residence.
John is bought and paid for by Cindy.
So what does the shadowy Cindy McCain want, and what does she stand for?
How very queeer that the King of Beers
would be made this proposal.
To make the Belgian-Busch connection
official the brewery will be
renamed
"Bel-ch"
Thanks Ben Bernanke.
SOLD !!!!!!
WHICH PART OF SOLD YOU DON`T GET...
THE S-O-L OR D ??
I SAID ....SOLD !!!!!
AND AB is a Big Part of it,..Cindy and her Trophy Rack ? She s Already got $$,..McCant Will Lose,..She might want the ''Sure thing " Maybe she`ll move to Belgium ? A closer flight to Dubai,.to go visit W
Next on the block:
St. Louis Cardinals,
Bidding will start at 10 million,
do I hear 15? ? ?
Thanks George W!
In a creepy twist Europe is going down the same large corporate path.
Posted by mcv57
------Amazing that people like you exist.
Posted by l8c6 at 11:27 PM : Jun 11, 2008
Unlike the right wing propagandists who proclaim Europe as a socialistic haven, Europe has always had private enterprise, large and small. There is nothing inherently wrong with this. The difference is that Europe also has governments that are more representative of the people. For the most they have many more than just two parties. Labor unions are also very strong. The U.S., on the other hand...
If you don''t get my meaning maybe someone can draw it out in pictures for you.
Remember the rule? "I before e, except after c, or when sounded as "a", as in neighbor and weigh."
Are you outsourcing your copy editing to Faux News?
Posted by bgwinnett at 05:36 AM : Jun 12, 2008
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No kidding.
SO, RAISE YOUR GLASS AND GIVE THREE CHEERS TO ANOTHER AMERICAN TAKE OVER BY FOREIGN COUNTRIES.
GOD "BLESS" AMERICA. NOT "G D" AMERICA.
AMERICANS KEEP GETTING SCREWED OUT OF THEIR JOBS, BY CHEAP FOREIGN LABOR, "FOR CORPORATE GREED."
GOD "BLESS" AMERICA. NOT "G D" AMERICA.
But the real question is--what is in this for John McCain?
Will this big money payment to Cindy McCain buy the Europeans something they want from John?
How come our gutless, useless "free press" hasn''t bothered to look into what Cindy McCain wants?
After all, John McCain is bought and paid for by Cindy.
Basically, John McCain is a gigolo for rich **** blondy Cindy.
Also this,I enjoy Budweiser,have done so long before I moved to this country.This is one of the best tasting beers in the world.and the only beer that ever occupied space in my fridge at home.
The real question here is whether Bud will taste better if the deal goes through, or will Belgian beer get worse?
"On paper, the Bush administration''s economic policies may seem profligate and potentially ruinous. But there was a consensus among business executives here that the falling dollar has been good for the U.S. economy. The cheaper dollar will stimulate demand for U.S. exports abroad and (in theory at least) reduce America''s demand for imports. That should gradually lower the towering trade deficit."
By David Ignatius
Tuesday, January 27, 2004 at www.washingtonpost.com
Four years later and what do we have!
And those that dont care remember that when you are standing in the Bread line.....
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by mrmazerati
June 12, 2008 11:08 AM PDT
- I''v been involved with A-B for many years. Something tells me this deal won''t go through. It''s too shaky on the financing side and there''s no driving reason to merge other than stock price. A-B people seem to need more than that. Similar bids came in the 80''s, when the dollar was cheap, and were also rejected.
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