Anheuser Busch up against a hostile takeover

[J Diddy]

http://www.joplinglobe.com/local/local_story_189113802.html

July 07, 2008 11:37 am

— BRUSSELS, Belgium (AP) — Brewer InBev turned up the heat in its hostile, $46 billion bid for Anheuser-Busch, announcing Monday that it will attempt to remove the company’s entire board.
An alternate board, which would include Adolphus Busch IV, the uncle of Anheuser CEO August Busch IV, will give shareholders “a direct voice” in the takeover, InBev said.
InBev plans to file a preliminary consent solicitation with the U.S. Securities and Exchange Commission Monday, asking Anheuser’s board to consult shareholders over the firing of 13 current board members.
Shareholders have the right to sue Anheuser’s board if they feel the directors are not acting in their best interest. A majority of shareholders would need to back InBev’s plan.
The Belgian-based maker of Stella Artois wants Anheuser to respond within 10 days.
InBev SA said it was taking action because Anheuser has refused to talk about its offer.
Carlos Brito, InBev’s chief executive, said he strongly prefers to negotiate with Anheuser on InBev’s $65 a share offer, which was well above the company’s $50 per-share price before market speculation about the offer drove the U.S. brewer’s share price to $61.67.
Anheuser shares rose 47 cents to $62.14 in early trading Monday. Inbev sares rose less than 1 percent to 41.64 euros ($65.43).
Anheuser-Busch Cos. Inc. rejected the bid two weeks ago, saying it undervalued the company. It put forward its own plan for earnings growth that would cut costs and increase prices to boost share prices over the next few years.
Brito again criticized the plan, saying it had “significant execution risks” because it did not tackle the problems Anheuser will face in a competitive industry as prices for transportation and key ingredients soar.
In addition to Adolphus Busch IV, the alternate board would include former Guidant CEO Ronald Dollens; former Nabisco CFO James Healey; ex-Pillsbury CEO John Lilly; ex-Glaxo CEO Ernest Mario; and former Lockheed Martin chief counsel William Vinson.
“They are committed to acting in the best interests of Anheuser-Busch shareholders and will take an independent view on the proposed combination,” InBev said.
The combined company would be the world’s largest brewer by far. Based in Belgium, InBev now pulls most of its profits outside of the stagnant beer-drinking markets of North America and Europe, focusing instead on emerging economies in Latin America, Asia, eastern Europe and Russia.
But the company’s aggressive cost-cutting has unsettled some in the United States.
Several politicians have come out against the deal, saying it may create a near-monopoly in the U.S. beer market and damage the economy in the company’s home state of Missouri by shedding some of the 6,000 workers the company employs in St. Louis.
InBev has promised not to shut any U.S. breweries and to keep the company’s North American headquarters in St. Louis.
The beer industry has been consolidating in recent years amid rising costs for transportation fuel and key ingredients.

Copyright © 1999-2008 cnhi, inc.

[teedubya]

**** St. Louis.

[Phobia]

They can't make the beer any worse.

[J Diddy]

6000 mo jobs?

[Bugeater]

The combined company would be the world’s largest brewer by far. Based in Belgium, InBev now pulls most of its profits outside of the stagnant beer-drinking markets of North America and Europe, focusing instead on emerging economies in Latin America, Asia, eastern Europe and Russia.
This doesn't make any sense, I don't see how being a brewer in the US isn't profitable.

[J Diddy]

This doesn't make any sense, I don't see how being a brewer in the US isn't profitable.

I can tell you with increasing labor, fuel for transportation, all the principal ingredients in beer going through the roof that probably doesn't help.

[1ChiefsDan]

This doesn't make any sense, I don't see how being a brewer in the US isn't profitable.being stagnant isn't the same as not profitable. Beer consumption isn't increasing in the US like it is in other countries - probably because we drink so much already:p

[Marco Polo]

**** St. Louis.

**** you.

[Archie F. Swin]

pretty sad that an American company that generates a billion dollars a month in revenue is not safe from foreign takeover

[Frazod]

pretty sad that an American company that generates a billion dollars a month in revenue is not safe from foreign takeover

No shit. Hopefully this gets blasted by somebody.

[Spicy McHaggis]

pretty sad that an American company that generates a billion dollars a month in revenue is not safe from foreign takeover

Foreign companies are taking advantage of the weak US dollar.

[Spott]

So when will the Cardinals change their stadium name to InBev?

[Frazod]

So when will the Cardinals change their stadium name to InBev?

AB doesn't own the Cardinals anymore.

[eazyb81]

6000 mo jobs?

Jesus, you really think InBev is going to drop $46 billion on a company just to fire thousands of employees? Why would anyone think that makes sense?

Don't believe the political hype.

It might suck for the STL residents to lose a cultural icon, but it is the right move for shareholders. This stock has been stuck in neutral for years due to poor management and a lack of international presence, and Missouri politicians should stay out of the way unless the state wants to trump InBev's $46 billion bid.

[Bugeater]

I can tell you with increasing labor, fuel for transportation, all the principal ingredients in beer going through the roof that probably doesn't help.
Labor may very well be cheaper in other countries, but I know fuel isn't & ingredient costs probably aren't either.

being stagnant isn't the same as not profitable. Beer consumption isn't increasing in the US like it is in other countries - probably because we drink so much already:p
Fair enough, but that statement makes it sound like it's more profitable elsewhere, and if that's the case why the hell do they want to acquire A-B?

[Spott]

AB doesn't own the Cardinals anymore.

I didn't know that. Seriously, I can't imagine that a company this freaking huge getting bought out by some crappy Euro beer maker. It would be a shame if this takeover went through because it would likely be a big loss of jobs to a lot of people in St Louis.

[StcChief]

This bud's for you.

[Archie F. Swin]

next week at the corner store: $4.25 per gallon gas, sixer of Bud $9.99

[blueballs]

I hope they buy Gieco also
and combine ad agencys

[Fairplay]

I would hope AB doesn't sell.

I hope AB buys Grupo Modelo ASAP.

[stlchiefs]

Jesus, you really think InBev is going to drop $46 billion on a company just to fire thousands of employees? Why would anyone think that makes sense?

Don't believe the political hype.



You don't have to believe the "political" hype, look at InBev's track record. They are very tight with spending and consistently cut jobs after takeovers. So yes, jobs will be lost. It should be noted that jobs will be lost if AB somehow defends itself as they are having to trim expenses now as a defensive measure as well.

[stlchiefs]

AB doesn't own the Cardinals anymore.

They do own the naming rights to the stadium though, but InBev is not stupid enough to mess with anything like that. They don't want to destroy AB, they just want to take it over.

[chief52]

[QUOTE=Spott;4833298 It would be a shame if this takeover went through because it would likely be a big loss of jobs to a lot of people in St Louis.[/QUOTE]

While St. Louis is the where AB is based, I believe there are breweries throughout the country and I would think the world. I know there is a huge AB brewery in California. It would be a big loss of jobs in many areas.

[eazyb81]

You don't have to believe the "political" hype, look at InBev's track record. They are very tight with spending and consistently cut jobs after takeovers. So yes, jobs will be lost. It should be noted that jobs will be lost if AB somehow defends itself as they are having to trim expenses now as a defensive measure as well.

Is "tight with spending" equivalent to profitable? Inbev is a much more efficient company than AB, and they have identified AB as a poorly-managed company. They're not going to lay off thousands, just like the Coors and Miller breweries didn't lay off thousands when they were bought out.

Anyway, as a public company, AB's responsibility is to its shareholders. If I owned stock in AB, I'd be pissed if they turned down this lucrative deal.

[chief52]

Who owns Coors now?

[eazyb81]

Who owns Coors now?

Molson.

[chief52]

Molson.

Didn't know that...

[stlchiefs]

Is "tight with spending" equivalent to profitable? Inbev is a much more efficient company than AB, and they have identified AB as a poorly-managed company. They're not going to lay off thousands, just like the Coors and Miller breweries didn't lay off thousands when they were bought out.



I've never agreed with the statement they will lay off "thousands" but if you believe they are going to buy AB and not lay numerous employees off I'll wager you some crisp casino cash.

Not sure about the tight with spending comment, but both AB and InBev are profitable companies, whether AB's stock has been a good investment for those looking for an increase in share value is another.

[Fairplay]

I've never agreed with the statement they will lay off "thousands" but if you believe they are going to buy AB and not lay numerous employees off I'll wager you some crisp casino cash.



Yeah, Inbev promise's to keep the headquarters at SL.

B.S. They will slowly ax them out.

[stlchiefs]

Molson.

Other way around. Coors acquired Molson.

[Hydrae]

Whatever will become of this icon?

http://www.atthetrackracing.com/images/2008/diecast/KK-BUD-L.jpg

[J Diddy]

Labor may very well be cheaper in other countries, but I know fuel isn't & ingredient costs probably aren't either.


Fair enough, but that statement makes it sound like it's more profitable elsewhere, and if that's the case why the hell do they want to acquire A-B?

labor however is significant

we be talking about unions here

[J Diddy]

Yeah, Inbev promise's to keep the headquarters at SL.

B.S. They will slowly ax them out.


i agree,

it will be like the chiefs

we won't change anything except coach with incompetence blame it on something else and blow it up

[chief52]

Other way around. Coors acquired Molson.

That is how I thought it went...

[Spott]

Whatever will become of this icon?

http://www.atthetrackracing.com/images/2008/diecast/KK-BUD-L.jpg

That car may be changing back to the original Dodge sponsor next year, with or without the takeover.

[beavis]

being stagnant isn't the same as not profitable. Beer consumption isn't increasing in the US like it is in other countries - probably because we drink so much already:p

We don't drink shit compared to Europeans.

[Spott]

We don't drink shit compared to Europeans.


Europeans eat a lot of shit, too.

[Slayer Diablo]

We don't drink shit compared to Europeans.

Our beer could be as good as theirs if we would just use wood and glass instead of aluminum...and more wheat/hopps wouldn't hurt either.

[little jacob]

well if euros took over then their beer might not taste like watered down piss

[J Diddy]

Our beer could be as good as theirs if we would just use wood and glass instead of aluminum...and more wheat/hopps wouldn't hurt either.


My name is J diddy and I approve of this message.

[kcxiv]

We don't drink shit compared to Europeans.

Should meet my neighbor. Them dudes drink every single day after work. Always outside working on their cars drinking beer. 12 pack after case just keep coming. He has a fridge in that garage that is just jam packed with beer. Them ****ers can drink.

[J Diddy]

Should meet my neighbor. Them dudes drink every single day after work. Always outside working on their cars drinking beer. 12 pack after case just keep coming. He has a fridge in that garage that is just jam packed with beer. Them ****ers can drink.


yeah but the european grease monkeys don't work, the govt. pays them to work on their cars and drink beer out of the garage fridge all day just to 1 up us


First basketball then this



Shit!!!!!!!!!!!!!!

[eazyb81]

Other way around. Coors acquired Molson.

No it wasn't. Technically it was a merger of equals via a stock swap, but a Molson has served as the chairman since the beginning of the merger.

[The Rick]

No it wasn't. Technically it was a merger of equals via a stock swap, but a Molson has served as the chairman since the beginning of the merger.
Also, Miller and Coors just completed a merger...

[JBucc]

Also, Miller and Coors just completed a merger...
They've combined their powers to make the shittiest beer possible. WE'RE DOOMED!!!!!!!!!!

[RNR]

They've combined their powers to make the shittiest beer possible. WE'RE DOOMED!!!!!!!!!!

I was thinking the same thing! Ciller Light

[Skip Towne]

Europeans eat a lot of shit, too.

Are you badmouthing Donger? :p

[blueballs]

They've combined their powers to make the shittiest beer possible. WE'RE DOOMED!!!!!!!!!!

It'l be like making love in a canoe adrift in a sewage lagoon

[markk]

do you guys really think InBev would change anything about the best selling beer in the United States? why would they do that?

i'm sure it will continue to be the same watered down hangover inducing swill it has always been

[eazyb81]

do you guys really think InBev would change anything about the best selling beer in the United States? why would they do that?

Exactly. They'll streamline operations and attempt to expand internationally, but they'd be crazy to make dramatic changes in the domestic market. They're not going to drop $50 billion on a company just to fire thousands of people for some secret ploy to screw over America like some on here seem to think.

[StcChief]

do you guys really think InBev would change anything about the best selling beer in the United States? why would they do that?

i'm sure it will continue to be the same watered down hangover inducing swill it has always beenthe brain washed drinkin' "American Lager" is watered down piss.... absolutely hate it. Inbev is the CA of beer industry.

[J Diddy]

My point is what would your opinion of this be? In the aspect that AB particularly Bud is America. When people think of American Beer they at some point rather quickly hit Budweiser.

Now some folk in Belgium wanna buy it?

What's next? Apple pie?

[markk]

Exactly. They'll streamline operations and attempt to expand internationally, but they'd be crazy to make dramatic changes in the domestic market. They're not going to drop $50 billion on a company just to fire thousands of people for some secret ploy to screw over America like some on here seem to think.

whatever dude. they are going to shut down production of all domestic pee and raze the entire factory immediately.

[ct]

Foreign companies are taking advantage of the weak US dollar.

Bingo! And it's been happening for awhile.

The ME nations are retooling to be the bankers of the world, for when their oil wells dry up.

[Redrum_69]

Thats awesome.

[redbrian]

They've combined their powers to make the shittiest beer possible. WE'RE DOOMED!!!!!!!!!!

Miller and Coors took home 8 medals at the 2007 Great American Beer Fest

Compaired to AB's 2

Anheuser-Busch, Inc. RedBridge Gold Gluten Free Beer
Anheuser-Busch, Inc. Michelob Marzen Bronze German Style Märzen

Instead of spending money on quality ingredients they prefer to use cheap ingredients like rice, and dump bucket loads of money on advertising getting suckers to believe they make a quality product.

[markk]

Miller and Coors took home 8 medals at the 2007 Great American Beer Fest

Compaired to AB's 2

Anheuser-Busch, Inc. RedBridge Gold Gluten Free Beer
Anheuser-Busch, Inc. Michelob Marzen Bronze German Style Märzen

Instead of spending money on quality ingredients they prefer to use cheap ingredients like rice, and dump bucket loads of money on advertising getting suckers to believe they make a quality product.

what I get from AB's advertising is not that AB makes quality products, but rather that dogs bounce really high off rubber floors, squirrels enjoy Bud Light, and that Bud Light "keeps it coming", whatever that means.

[BIG_DADDY]

Miller and Coors took home 8 medals at the 2007 Great American Beer Fest

Compaired to AB's 2

Anheuser-Busch, Inc. RedBridge Gold Gluten Free Beer
Anheuser-Busch, Inc. Michelob Marzen Bronze German Style Märzen

Instead of spending money on quality ingredients they prefer to use cheap ingredients like rice, and dump bucket loads of money on advertising getting suckers to believe they make a quality product.

That's the :whackit: medals. I like real beer.