Belgian Co Readies Potentially Hostile Takeover of Busch

[StlSluggers]

Rather big news around here...

Report: InBev readies $46 billion bid for A-B
By Jeremiah McWilliams
ST. LOUIS POST-DISPATCH
05/23/2008

Belgium-based brewer InBev, the world's biggest beermaker, is preparing a takeover bid for Anheuser-Busch Cos., according to a detailed posting on a blog run by the Financial Times. The information sent shares in Anheuser-Busch rocketing up more than 7 percent in early trading.

The FT Alphaville blog is reporting that InBev is working on a $46bn takeover for St. Louis-based Anheuser-Busch, the maker of Budweiser. The blog did not disclose its sources, and noted that representatives from InBev and Anheuser-Busch did not comment.

From the blog: "The deal is being billed as a 'transformational' move by those executives and bankers involved, and is likely to herald the long-awaited end-game in global drinks industry consolidation. InBev's aim is to create the fifth largest consumer products group in the world."

The blog said a direct approach to Anheuser-Busch chief executive August A. Busch IV is being planned. Expecting a cool reception, the InBev team is preparing to send a follow-up letter to A-B's entire board. The expected pitch is $65 a share. If Anheuser refuse to commence friendly talks, InBev is considering a public appeal direct to the target's shareholders.

The blog said "sources indicated that while extensive work had been carried out on the transaction, InBev was 'not about to push the button.'"

[knapplc]

If we ask nicely, maybe they'll take Coors, too.

[StlSluggers]

And Miller.

Then we can move Corona to New Mexico, and the world will be in balance.

[knapplc]

That is a plan!

[Dan Lambskin]

does this mean they will be able to make Budwieser taste good?

[Pogotheostrich]

My first thought was this could be very bad for St. Louis.

[Mookie4ever]

My first thought was this could be very bad for St. Louis.

I don't see how. It's not like they are going to brew the beer in Belgium and import it.

[StlSluggers]

My first thought was this could be very bad for St. Louis.

I agree. Many jobs would be lost, undoubtedly, as the companies merge similar services.

[Pogotheostrich]

My first thought was this could be very bad for St. Louis.

I don't see how. It's not like they are going to brew the beer in Belgium and import it.

The brewery isn't going anywhere but many corporate and support jobs will be lost.

[Pogotheostrich]

My first thought was this could be very bad for St. Louis.

I agree. Many jobs would be lost, undoubtedly, as the companies merge similar services.

In the past 6 months both my company and my wife's was bought out so I'm becoming very familiar with it.