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Anheuser-Busch Takes A Low Blow From InBev

Published 06/27/08 Jeff Bennett - Print Article
E-mail - editor@economyincisis.org

Thursday Anheuser-Busch officially rejected InBev’s offer of $46.3 billion to acquire the American brewery, saying it has a plan to restructure itself and is not for sale. Expect hostile and dirty tactics from InBev.

The Belgian brewer filed a lawsuit against Anheuser-Busch to allow the shareholders to remove the board members without cause. If the courts rule in favor of InBev, Anheuser-Busch’s status as an American company may be in serious jeopardy. Warren Buffett and Berkshire Hathaway Inc. own almost 36 million shares of Anheuser-Busch and stand to profit $600 million should Anheuser-Busch sell abroad. These dirty tactics enacted by InBev make it impossible for any American company to remain independent of foreign takeover to represent the best interest of Americans.

Source Bloomberg.com:

InBev NV, the Belgian brewer trying to take over Anheuser-Busch Cos., said it will seek to oust the U.S. company's board after getting no response to its $46.3 billion bid for two weeks.

InBev plans to ask shareholders to approve new directors for the maker of Budweiser beer, according to a filing today with a court in Wilmington, Delaware. The Leuven, Belgium-based company said in the filing that investors may need to fire the existing board because of St. Louis-based Anheuser-Busch's ``apparent plans to attempt to block the acquisition proposal.''

Before InBev's June 11 proposal, Anheuser-Busch Chief Executive Officer August A. Busch IV told the Belgian brewer that his company wasn't for sale and that ``he and his board are 'committed' to remain independent,''' InBev said in the filing. The brewer may reject the $65-a-share proposal this week, the Wall Street Journal reported yesterday.

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