Thursday, June 12, 2008

InBev Makes Its Bid

The international beer conglomerate made it official this week that they are making a bid to purchase Anheuser-Busch. If successful, the new company would control approximately 1/4 of the world beer market.

News reports so far indicate that A-B may have a difficult time fending off the unsolicited offer.

InBev is offering $46 billion for the company, about $65 cash for each share of A-B's stock. When the market closed on Wednesday, A-B stock was selling for $58.35. An 11% return on the stock would be hard for the shareholders to turn down, especially a cash offer versus a stock swap or other instrument.

More coverage is available on the Post-Dispatch's website. P-D columnist Dave Nicklaus offers some first thoughts about the offer.
This is the beginning, not the end. The Microsoft-Yahoo drama took three months to play out — Microsoft launched its bid Feb. 1 and formally abandoned it May 4 — and it may not be over yet. The plot could take many twists and turns from here, so stay tuned.

Other coverage from the New York Times and the Financial Times.

Also, here's InBev's own take on their move.
"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...The combination will create a stronger, more competitive, sustainable global company which will benefit all stakeholders."
And here is A-B's response to the unsolicited cash bid.
"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 board will review the merits of the proposal consistent with its fiduciary duties and in consultation with its financial and legal advisers. The board will pursue the course of action that is in the best interests of Anheuser-Busch's stockholders."

No comments:

travel to
eXTReMe Tracker