$65 a BUD (NYSE)

June 19, 2008 by Latest
The head of Belgian brewer InBev NV visited Capitol Hill Tuesday to promote his company's takeover of Anheuser-Busch to skeptical lawmakers and told reporters the $65 a share offer is the highest it would bid. At that price per share, the deal would be worth about $46.3 billion.
At the meeting Missouri Senator Claire McCaskill said: “I explained to them that I would do everything I could to stop this sale from going through.” She added: “It's very unclear that any of us (members of Congress) can do anything at this point” other than to express displeasure.
This is true as is does not look like any regulatory clearance is needed in the deal. InBev would combine breweries that operate in different geographic markets and thus not violate antitrust laws.
Meanwhile, Berkshire Hathaway, the investment company controlled by billionaire (and American icon in his own right) Warren Buffett, may bank a $600 million profit if InBev NV succeeds in its takeover of Budweiser-maker Anheuser-Busch. Some news outlets have reported that Buffett committed to support the takeover. Buffett's company owns 35.56 million shares of BUD (NYSE), which is roughly 5%.
Perhaps even worse speculation right now is that Grupo Modelo, already 50 percent owned by Anheuser, is expected to block any attempt by them to buy full control as a defensive move (this would make Modelo an American company, not a Mexican company, which their CEO is vocally against). Analysts say the most likely outcome is that Modelo will embrace InBev's bid for Anheuser and hope the Belgian brewer proves to be a better partner than the biggest U.S. brewer.
So where does this leave us?
Well, we think it's finally official… we need to strike. Details to follow.
News Sources culled for this post:

Leave a Reply

Be the First to Comment!

avatar
800
wpDiscuz

From Brian’s Belly

  • The Mamba Bar Tool
    A few years back, I was enamored by the Snake Bite, an ultra-sleek bottle opener that doubles as my keyring. But I never ...
    Published on December 4, 2016
  • Build a Steel Sixtel Keg Cooler from an Old Water Tank
    Need to chill sixtel or corny kegs for an upcoming party this summer? Sometimes you don't want your kegged beer to tie you ...
    Published on June 29, 2016
  • The Drinking Jacket 2.0
    Do you enjoy drinking a frosty one outdoors but hate that freezing fingertips feeling? The Drinking Jacket 2.0 is a feature-packed hoodie and ...
    Published on November 18, 2015
  • Archer Glengoolie Glasses, for Your Mid-Range Scotch
    We all know that Glenlivet and Glenfiddich can't hold up to the peaty tang of Glengoolie Scotch Whisky. Certainly Sterling Archer knows. Now ...
    Published on November 13, 2015
  • Perfect Drink App-Controlled Smart Bartending System
    The Perfect Drink scale and app is a modern bartender's buddy. It will help you consistently create cocktails that are well-measured and well-received, ...
    Published on November 11, 2015

Archives