Report: A-B Will Reject Buyout Offer
2 hrs ago
KSDK -- The Board of Directors for Anheuser-Busch will reject a buyout offer from Beligan brewery InBev, according to an online report from the Wall Street Journal.
The Wall Street Journal report said the board will reject the offer this week.
The report did not go into much depth, but said the board rejected InBev, saying the offer undervalues Anheusher-Busch stock.
The Wall Street Journal, quoting unnamed sources, reported that A-B brewery executives said they will cut costs over the next few years to create a savings of $500 million. In addiiton, they could sell off the theme parks and make billions more.
A keystone of the rejection is a proposed special dividend for shareholders. That dividend would put extra money in the pockets of shareholders. Instead of getting $65 per share from InBev, shareholders would receive less, in the form of the dividend.
Surprised that the board is so gutsy. There have been demonstrations in St Louis, with the good local folks carrying signs, that they do NOT want a foreign brewery taking over what is such a tradition in our city. There were reports from other breweries taken over by InBev of the treatment of the employees, etc, etc.
AB is VERY good to their employees. I always wanted to be a beer salesman, but wasn't qualified. :D
I guess the ball is in InBev's court. Here's hoping their isn't a hostile takeover attempt. Glad they're not selling out to the Europeans. America isn't totally for sale at a bargain basement price.
I greatly admire the board of directors. It's a gutsy move, particularly going against Warren Buffett, who holds more stock than the Busch family.
This just came out a few hours ago.