Boycott Budweiser to protest the foreign sale of Anheuser-Busch to Belgian brewer InBev.

August A. Busch IV Sells Out America PDF Print E-mail
Written by David   
Monday, 14 July 2008 08:29
Belgian brewer InBev announced earlier that it will buy Anheuser-Busch for $52 billion to create the world's largest brewer.

$70 a share was too good of an offer to keep CEO August A. Busch IV from selling an American icon to a foreign entity.  The acquisition means control over America's largest brewer moves overseas as we watch the Busch family turn from patriots to traitors.

InBev has said it plans to use St. Louis as its North American headquarters, and that it will keep open all 12 of Anheuser-Busch's North American breweries.  Marketwatch reports that the new company will be called Anheuser-Busch InBev.

The deal must still be approved by shareholders and European and U.S. antitrust regulators.  This is certainly a good thing as a number of politicians have been verbal about the anti-American feelings that this deal has.

Major news outlets such as Forbes have been reporting that job cuts would be eminent.  For those of you that were worried if August would land on his rich feet after all of this, fret not, as his job is safe on the board of the new foreign company.  Can you say turncoat?

We will be the first to admit, we were suckered by August's "American family values" TV commercials and public rebuke of the takeover offer, so much so that we retracted our early boycott efforts against Anheuser-Busch.  But with these latest events, just about the only thing we can think to do today is stop drinking Budweiser.  We advise you to do the same.

Last Updated ( Tuesday, 15 July 2008 00:17 )
InBev Ups Offer to $70 a BUD; Anheuser Negotiating? PDF Print E-mail
Written by David   
Friday, 11 July 2008 05:27
InBev has upped its per-share offer to takeover Anheuser-Busch to $70, an increase of $5 a share, according to the Wall Street Journal.

InBev may be back to attempting a friendly deal after weeks of non-negotiation with A-B.  Just two weeks ago, Anheuser said that InBev’s offer of $65 per share "substantially undervalues" the company.  InBev was publicly firm about the $65 a BUD price.

According to the Journal, Anheuser's board may agree to the offer over the weekend, though "social issues," including the name of the newly-formed company will still take time to work through.  InBev has claimed that Budweiser would be the "flagship brand" of the new company, and according to The Financial Times, issues still to be resolved include how InBev would honor Anheuser-Busch's commitments to its employees and beer wholesalers, and whether executives would retain roles at the merged company.

Here at Drink American, we certainly hope that all of the new Budweiser commercials that have been running endlessly, touting the virtues of American greatness and family values of the Busch family, aren't full of clydesdale shit.

Anheuser-Busch Fires Back at InBev, Files Suit PDF Print E-mail
Written by David   
Wednesday, 09 July 2008 21:10
Budweiser brewer Anheuser-Busch is suing InBev after declaring that their "bargain price" offer of $65 a share is illegal.  Anheuser-Busch accuses InBev of using "deceptive conduct" to try to win control of the company.  We previously reported that InBev filed a statement with regulators in an attempt to take over Anheuser-Busch's board.

In the new suit, Anheuser-Busch is seeking an injunction against them, in hopes of stopping any form of takeover.

They also claim that InBev was spewing false rumors of an acquisition last month and their attempts to take over the board is a "self-serving effort" to try to purchase the company at a lowered price.

"To date, Anheuser-Busch has been unwilling to engage with InBev in a dialogue to achieve a friendly combination. As such, InBev believes it is time to take action to ensure Anheuser-Busch shareholders are provided the opportunity to have a direct voice in the process and a say in the future direction of the company," according to a recent statement by InBev.

Anheuser-Busch also claims in the suit that InBev does not have sufficient financing to facilitate the $46 billion takeover bid stating, "Given the state of the credit markets today, no group of financial institutions would unconditionally commit $40 billion to a borrower to pursue a hostile acquisition."

With St. Louis serving as the battlefield for the case, InBev placed a full-page ad in yesterday's St. Louis Post-Dispatch.  The ad stated that Budweiser would be expanded globally and the takeover would make for a stronger, more competitive global company.
Source: HedgeCo.net 

Spurned InBev replies to Anheuser-Busch PDF Print E-mail
Written by David   
Tuesday, 01 July 2008 16:52
Unfortunately, and as expected, InBev announced today that they are committed to their $65-per-share offer for Anheuser-Busch and said they "will pursue all available avenues" to allow A-B shareholders to have a direct voice in the process.

On June 26, A-B formally rejected InBev's $46.3 billion takeover proposal, calling the $65-per-share offer "financially inadequate and not in the best interests of Anheuser-Busch shareholders." InBev is laying the verbal groundwork to go hostile on A-B's ass by either organizing the removal of Anheuser-Busch board members or by taking InBev's offer directly to Anheuser-Busch shareholders.

I understand how InBev can try to buy the publicly traded company right out from under the Busch's butts (offer the shareholder's more than the stock is worth) but how on earth do they remove the board?  InBev has filed suit in Delaware (where A-B is incorporated) asking the court to confirm A-B's shareholders can remove without cause all 13 members of the A-B board.  This is kinda like asking the lunatics to run the asylum.  How about letting the people with the most knowledge and access to information run the company?  If the board recommends NOT selling (A-B approved an enhanced retirement program to be offered to certain salaried employees in connection with its plan to reduce costs and improve efficiency) then hey, maybe you shouldn't sell.

Anheuser-Busch to Reject InBev; Drink American Stands Down from Boycott PDF Print E-mail
Written by David   
Thursday, 26 June 2008 12:04

In a move that has surprised many (including us) it's been reported that Anheuser-Busch plans to reject InBev's unsolicited $46.3 billion takeover offer, saying it undervalues the company.

It is with great pleasure that we would like to officially stand-down from the Anheuser-Busch boycott that we were suggesting take place on Independence Day. Those that had pledged to stand by our boycott understood the importance of dissuading members of the Anheuser-Busch board of directors from selling the All-American company to a foreign entity.

We would like to suggest that a boycott of all InBev products continue, as a rejection from Anheuser sets the stage for InBev to either raise its bid (as high as $70 a BUD, by some reports) or take its bid directly to shareholders -- options InBev is likely to pursue. A list of all InBev products can be found here and a list of 12 great American beers for the Fourth of July can be found here.

In rebuffing InBev's offer, Anheuser-Busch plans to map out its own restructuring plan soon that would include the sale of the company's theme park operations, The Wall Street Journal reported.

The plan also would include layoffs, more than $500 million in cost-cutting efforts and the sale of Anheuser-Busch's packaging unit, the New York Times added. Both are some unfortunate side-effects.

Billionaire investor Warren Buffett, whose Berkshire Hathaway is Anheuser's second-largest shareholder, told CNBC on Wednesday that he viewed the beer battle as "an interesting spectator sport" but had not thrown his support behind either side.

Drink American

Last Updated ( Thursday, 26 June 2008 16:36 )
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