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July 8, 2008

InBev Announces Insurgent Slate of Directors for Anheuser-Busch

InBev, the Belgian brewer attempting to purchase Anheuser-Busch has announced a slate of directors that it will run in its consent solicitation contest.  Eventually, Anheuser-Busch will negotiate with InBev, which it currently refused to do, demand a higher price of a few dollars, and InBev will agreed to pay the higher price (also agreeing to pay incumbent managers a stipend in some form -- consulting, continued employment, severance, et. al.).  The price cannot climb too much higher because InBev has its own financing problems.  What I find intriguing is the public lack of comparison between InBev's plans for the company and Anheuser-Busch's own "restructuring" plans.  Employees and the local community may be better off under InBev's plans than Anheuser-Busch's.  Under InBev more factories may stay open and be upgraded to offer a more competitive product.  Which would the the Governor of Missouri prefer -- a languishing, locally owned  company that slowly bleeds jobs or a healthy, growing company owned by InBev.  I know what Anheuser-Busch shareholders would prefer, $65 instead of $35 a share.

July 8, 2008 | Permalink

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