Monday, May 26, 2008

Now Anheuser-Busch Could Be Chugged

This is from a retired pal of mine FireGeezer.

THE CITIZENS OF ST. LOUIS HAVE THEIR WORTS IN A TWIST this weekend after word got out that Belgian beer behemoth InBev is considering a hostile takeover of Anheuser-Busch.

InBev is currently the world’s largest brewer, by volume produced, and is looking to get into the lucrative American market.  Last year they made an import/distribution agreement with A-B to market some of their brands in the U. S. 

InBev has been gobbling up some of the leading brewers in the world including Beck’s and the venerable Bass Ale.  The proposed merger of Miller and Molson/Coors recently surpassed A-B’s standing in the beer world.  A-B’s stock was trading for around $52 before this news came out and then it jumped up to nearly $57 on Friday.  InBev is said to be considering an offer of $65 to the shareholders that will be hard for them to refuse.

Anheuser-Busch’s stock value has actually declined by 1.4% in the past five years while the Standard and Poor Index has risen 51% in that same time.  It is speculated that if InBev takes over the St. Louis firm, it will lead to a large cutback in A-B’s advertising budget.

If you’re interested in the nitty-gritty of this story, start with this good background article in Bloomberg News HERE.

1 comment:

Anonymous said...

I know some super-high-ups in AB and I seriously doubt they will ever let it go, it is a family business after all. But that being said, you never know.

How do you enjoy your Turkey on Thanksgiving Day?

How close will the Presidential Election be in Electoral Votes?

If Joe gets advertisers, would you take your business else where because of it?

Who are you voting for in the 1st District? Andy Harris or Frank Kratovil

Has Joe gone to far with the leaked info on the deceased woman found in the Industrial Park?

Is Joe Stalking or In Love with Gary?

Should we back off the verbal attacks on family members unless they are involved with the posting?