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PostMay 31, 2008#51

Goat, I guess this is the line from your original comment that is most confusing:



"It is largely the fault of St. Louis though, because between city earnings taxes and a slew of other stupid sh*t this city does, who can prevent companies from being ate up or moving away."



I do not see how this pertains to the potential acquisition of AB by InBev. I do agree with you that there are issues with relationships maintaned between the city and businesses...how ever, none of that comes into play in this particular situation. AB is a target, they are not making this choice...it is being made for them (possibly).

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PostJun 01, 2008#52

goat314 wrote:
The Central Scrutinizer wrote:
goat314 wrote:This is going to be pretty devastating if this goes down. It is largely the fault of St. Louis though, because between city earnings taxes and a slew of other stupid sh*t this city does, who can prevent companies from being ate up or moving away. Lets face it this city and state are behind the times and operates like a city of the stone age. If those other major corporations leaving the area didn't change anything, hopefully if we lose Busch people will get a chance to step back and make some serious policy changes in this region. If we don't change with the times, its only a matter of time before the St. Louis metro starts losing population. Look at what is happening in Pittsburgh, Cleveland, and Detroit. It looks like we are next in line.


Wow, completely miss the mark much?



This has nothing, I repeat, nothing to do with city earnings tax. Or the city itself, for that matter.


You always miss the mark.


Coming from you, that's a compliment. It means I am always right.

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PostJun 01, 2008#53

The Central Scrutinizer wrote:
goat314 wrote:
The Central Scrutinizer wrote:

Wow, completely miss the mark much?



This has nothing, I repeat, nothing to do with city earnings tax. Or the city itself, for that matter.


You always miss the mark.


Coming from you, that's a compliment. It means I am always right.


I wouldn't say right, just opinionated. Like I've said before...I can respect everyones opinion, but I don't have to necessarily agree with them. Its obvious that you and I are on opposite ends of the spectrum, but it seems like your the only one that consistently tries to discredit everyone that doesn't directly agree with you, but then again you are the scrutinizer :roll:. If thats something to be pride of, to be known to scrutinize.

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PostJun 01, 2008#54

June 1, 2008 News:



US brewer hopes to nip merger in the Bud

Published Date: 01 June 2008

By Kristy Dorsey

Business.scotsman.com



WEEKS before talk of the latest mega beer merger made the headlines, top brass at Anheuser-Busch were already fielding questions as to whether the largest brewing company in the United States would succumb to the weak dollar and powerful foreign competitors.



In April, chief executive August A Busch IV admitted to distributors at a meeting in Chicago that 2008 would be a challenging year for the St Louis, Missouri-headquartered company. Subsequently asked whether Anheuser-Busch could remain independent, hADVERTISEMENTe reportedly said that the maker of the iconic Budweiser brew would not be acquired "on my watch"...



(Read More) http://business.scotsman.com/business/U ... 4139740.jp





Anheuser-Busch pulls in top defence team

London Times

June 1, 2008



BEER giant Anheuser-Busch, maker of Budweiser, is hiring two heavyweight investment banks to bolster its defences against a possible $46 billion (£23 billion) bid from larger rival, InBev, the world’s biggest brewer.



Anheuser, based in St Louis, Missouri, is thought to be taking advice from Goldman Sachs and Citi on how to fend off takeover interest from InBev, which owns brands including Stella Artois and Beck’s.



The board of Anheuser is expected to resist fiercely any attempt to acquire it. August Busch IV, Anheuser’s chief executive and great-great grandson of the company’s founder, recently told distributors in the US that the company would not be sold “on my watch”.



(Read More) http://business.timesonline.co.uk/tol/b ... 039995.ece

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PostJun 01, 2008#55

Since May 19th, BUD has increased from 50.55 to 57.46 at closing on May 30th. That's a phenomenal 13.7% gain in only 9 trading sessions. No matter what August Busch IV says, this means that the market is confident of a BUD/INBEV merger.



What's the point in fighting off a buyout now? Busch's job was to increase shareholder value but BUD stock has been flat since 1999. That's not exactly doing a good job. Well how does one increase stock price? Make better beer and grow the market. As compared to their competitors, they failed. How can one even compare their flagship beers (Budweiser and Michelob) with InBev's Stella Artois, Boddington's, Bass, Hoeegarden, Beck's, Leffe, etc? They're not even in the same league.



Why did BUD think they could grow by creating a craft beer business on their own? Bad strategy. Beer drinkers didn't buy it because Anheuser-Busch is not known for making good beer. A better strategy would have been to buy great craft beers w/ excellent branding that they could then market internationally. Boston Beer, New Belgium, Sierra Nevada, etc. August Busch IV should know that it's too late to create a strong brand mix. If they couldn't create good beer, they should have bought it. I think they finally got the picture when they bought Rolling Rock in 2006.



Unless August has some stellar plan to turn Anheuser-Busch around, there's no reason not to accept the INBEV deal. A minimum $65/share is a 30% premium over an average price of $50 before the deal started to percolate. Seeing as they have had little success in creating their own brand and haven't done much to improve the brand mix through acquisition in the past, I have little faith they could do it now.



The story is that BUD has rested on its laurels for far too long and now their dynasty has ended. The dollar is weak against the strong Euro. Miller and Coors are merging now, which will put even more pressure on BUD. BUD better take the deal or its stock will fall immediately back to 48-50 and then gradually decrease in value as Miller/Coors and InBev rip BUD to shreds.



And because they became complacent, St. Louis will suffer. Check this out: "InBev is a Belgian-based firm run by Brazilians with a reputation for vicious cost-cutting. Last week an analyst described them as “machete-wielding investment bankers”. "



A more detailed explanation here: http://business.timesonline.co.uk/tol/b ... 038764.ece



InBev close to obtaining financing for the bid: http://www.reuters.com/article/companyN ... ol=INTB.BR

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PostJun 01, 2008#56

Certainly AB has failed to growth its stock price. That said, most of your argument for the merger seems to be based on a dislike of Budwiser itself rather than on its prospects for future growth. If the Chinese and Indians like the taste of Bud, then it doesn't matter what you think.

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PostJun 01, 2008#57

That is A LOT of financing...

Seems like all their "savings" from combining overlapping operations would be just enough to pay the interest :)

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PostJun 01, 2008#58

JMedwick wrote:Certainly AB has failed to growth its stock price. That said, most of your argument for the merger seems to be based on a dislike of Budwiser itself rather than on its prospects for future growth. If the Chinese and Indians like the taste of Bud, then it doesn't matter what you think.
Not my taste, the world's taste. Your argument does not take the freakishly bullish Chinese (and Indian) markets into consideration. As these economies grow, tastes of the populace will become more refined. Seeing as InBev sells better tasting beer than A-B, InBev's market share in those countries will grow more rapidly than A-B over time. In the meantime, Budweiser is heads and shoulders above the local Chinese beer industry which seems to be spotty at best.



InBev is not well ingrained in America but they will after the buyout. This is a great growth opportunity for InBev and it will also benefit A-B shareholders. St. Louis will suffer a bit, but that's what happens when its largest companies become complacent. Warren Buffett will help make this happen because it's simply the right move for both companies.

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PostJun 01, 2008#59

I understand that it makes good financial sense to accept this deal for the shareholders; I really just hope it gets turned down for the sake of the STL city economy. I don't know how many more headquarters we can lose and still be viable: Anheuser Busch, AG Edwards, May Department Stores, Ralston Purina... We have not gained a major headquarters in quite some time.

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PostJun 01, 2008#60

then gradually decrease in value as Miller/Coors and InBev rip BUD to shreds.


that is complete bs. A-B has consistently grown its market share over the last two decades. Miller and Coors, are you joking? They're not "growing" at all. I think A-B products topped out at 53% of the market and is now at 47%.

I'm not an economist, but I don't get these company "fire sales", that its ALL about shareholders stock value. Why didn't companies sell out long before then? The history of AG Edwards or A-B, yawn ,I'll take the huge stock value and totally sell out one of americas most famed companies. And sure, Budweiser isn't the best tasting beer, but it or Bud Light, is by far the best selling brand and that's due to A-B's crazy marketing. This will NOT happen under In-Bev and the company will go completely down the tubes. it's sad that this is only about making a buck in the short term and ruining the company/brand in the long term. this buyout is a TERRIBLE idea.

And people in St. Louis need to stop with the woe-is-me crap. The 18th largest metro area is ranked at number 7 with the number of Fortune 500 companies.

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PostJun 02, 2008#61

And people in St. Louis need to stop with the woe-is-me crap. The 18th largest metro area is ranked at number 7 with the number of Fortune 500 companies,



^You tell 'em JC :lol:

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PostJun 02, 2008#62

JCity wrote:
then gradually decrease in value as Miller/Coors and InBev rip BUD to shreds.


that is complete bs. A-B has consistently grown its market share over the last two decades. Miller and Coors, are you joking? They're not "growing" at all. I think A-B products topped out at 53% of the market and is now at 47%.

I'm not an economist, but I don't get these company "fire sales", that its ALL about shareholders stock value. Why didn't companies sell out long before then? The history of AG Edwards or A-B, yawn ,I'll take the huge stock value and totally sell out one of americas most famed companies. And sure, Budweiser isn't the best tasting beer, but it or Bud Light, is by far the best selling brand and that's due to A-B's crazy marketing. This will NOT happen under In-Bev and the company will go completely down the tubes. it's sad that this is only about making a buck in the short term and ruining the company/brand in the long term. this buyout is a TERRIBLE idea.
It doesn't matter whether you think the buyout is a terrible idea or not. What matters is that the transaction makes sense for the shareholders of both companies. Analysts suggest it does and that's why the deal will likely go through as long as financing can be arranged. I agree and it is unfortunate that buyout probably will not be good for St. Louis.



You may not like it, but this is not "B-S" in the least. It is the truth and any shareholder will know it by seeing what BUD has done for them in the last 8 years. Absolutely zilch.



A-B has grown its market share in America over the last two decades? That's great, but today's shareholders don't care about the last two decades. What about domestic growth now? It's stagnant. Sorry, but they had to grow the world market which they did not do appreciably.



By the way, this isn't a "fire sale" or sale at a heavy discount. A-B shareholders will be obtaining a 30% premium (of which they've already made 15% of since the stock has started to rise due to speculation of the deal.) And it is almost solely about shareholder value -- Ask any CEO.



Miller/Coors now controls 29% of the US Market and will be able to utilize economies of scale to run more efficiently. This, in addition to their combined portfolio of craft and import beers will allow them to grow the US and world markets more appreciably than A-B.



A-B is getting squeezed from both sides. And why? They were on top. Poor leadership, unfortunately. There is little to stop the sale now save for financing difficulties.



More analysis from MarketWatch below:


MarketWatch [url]http://snipurl.com/2c1do[/url] wrote:Content with a dominant stateside market share of nearly 50%, the St. Louis-based company was slow to innovate, catching on late to a consumer shift toward imports, craft brews and distilled spirits, categories that have flourished over the past decade while mass-market beer went into slow but seemingly inexorable decline.



Those factors, coupled with the weak U.S. dollar and a steady dimunition of family control, has left it open to a once-unthinkable takeover. And InBev has apparently stepped up to the plate.

....

As other brewers looked to fast-growing international markets, often acquiring local brands and putting multinational marketing muscle and efficiency behind them, Gilpin said, A-B "did not participate." "They were asleep at the wheel on the international front," she said, and "now they're trying to turn the ship around. But it is probably too late."


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PostJun 03, 2008#63

It's funny to read comments about going back to French, Dutch and German roots-- in a way that makes sense but I truly believe that a buyout by this massive corporation with a knack for ruthless buyouts would be a serious detriment to the employee- friendly company A.B., and also to the local and national economy. This buyout would be a disaster, economically and culturally as AB is an icon.



I'm not sure of its potential, but I just received a link to a petition against the buyout, at http://www.savebudweiser.com.



I'm encouraging friends and family to sign, and would love to know of other efforts to stop the buyout

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PostJun 03, 2008#64

kim_mcgrath13 wrote:I'm not sure of its potential, but I just received a link to a petition against the buyout, at http://www.savebudweiser.com.



I'm encouraging friends and family to sign, and would love to know of other efforts to stop the buyout


The potential is zero. This petition will have no effect either way.

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PostJun 03, 2008#65

innova8ion wrote:
It doesn't matter whether you think the buyout is a terrible idea or not. What matters is that the transaction makes sense for the shareholders of both companies.


I like money just as much as the next American, but what if there is some value in national, regional, and local identity and creativity that is not easily quantiifiable and distributable to shareholders. There are extremely valuable and yet unquantifiable assets that would be devalued if not destroyed by a Belgian acquisition. There is a powerful brand loyalty, nostalgia, and even patriotism that Budweiser evokes. Budweiser is part of St. Louis' identity. They support local charities, support the local economy, support the local tourism/national profile. The free-market economy has its merits, and has made a lot of people rich, but it shouldn't be considered a perfect system.



The shareholders certainly factor into this transaction, but they are not the only ones. I think it is naive, and adhering to a sale-price obsessed system to think shareholder return is the only important element of this sale.




It is the truth and any shareholder will know it by seeing what BUD has done for them in the last 8 years. Absolutely zilch


BUD stock has returned about 45% in the last 8 years and about 150% in the last 10 years (both not including recent speculation). Not stellar, but not zilch either.

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PostJun 03, 2008#66

^ I really doubt a buyout would have all that much to do with St. Louis, except for the fact that the company is located here. This is a blatant guess, but I would assume that the majority of the stock is controlled by parties with relatively little or no vested interest in StL.

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PostJun 03, 2008#67

Wabash wrote:


BUD stock has returned about 45% in the last 8 years and about 150% in the last 10 years (both not including recent speculation). Not stellar, but not zilch either.




Don't forget THE most important return a stock gives a shareholder.



5 Year History Splits and Dividends Amount Per Share

05-07-08 Cash Dividend 0.330000

02-07-08 Cash Dividend 0.330000

11-07-07 Cash Dividend 0.330000

08-07-07 Cash Dividend 0.330000

05-07-07 Cash Dividend 0.295000

02-07-07 Cash Dividend 0.295000

11-07-06 Cash Dividend 0.295000

08-07-06 Cash Dividend 0.295000

05-05-06 Cash Dividend 0.270000

02-07-06 Cash Dividend 0.270000

11-07-05 Cash Dividend 0.270000

08-05-05 Cash Dividend 0.270000

05-05-05 Cash Dividend 0.245000

02-07-05 Cash Dividend 0.245000

11-05-04 Cash Dividend 0.245000

08-05-04 Cash Dividend 0.245000

05-06-04 Cash Dividend 0.220000

02-05-04 Cash Dividend 0.220000

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PostJun 03, 2008#68

The Central Scrutinizer wrote:
kim_mcgrath13 wrote:I'm not sure of its potential, but I just received a link to a petition against the buyout, at http://www.savebudweiser.com.



I'm encouraging friends and family to sign, and would love to know of other efforts to stop the buyout


The potential is zero. This petition will have no effect either way.


I wouldn't say zero - some of the comments are entertaining:


I love a cold red neck on a hot summer day.
I don't want to have to drink Schlafly!
Rediculous Idea. No one will buy it anymore, theres plenty more out there and people will start driking Miller, etc before they drink a foreign bud light.
First you sell out Busch Stadium, now the whole city of St. Louis? All to make more $? How much more do you need!!!!!
If this takeover were to happen would the ticker symbol change to INU.S.? We unknowingly sold Washington DC to foreigners years ago, and look what's happened. AB is a Main Street American icon, represenitive of American's. What American asset is next, the Liberty Bell perhaps?
I worked there 20 years. I don't want my pension paid in Euros.
Screw InBev, bunch of communist cost-cutting investment bankers
I like Tequzia
Go Okemos Chiefs!
They can take our oil but they cant take our beer!
In Bev is stupid....and what a stupid name for a company too.
I heard Inbev hates puppies, children, and Clydsdales... What scum!
I heard In Bev wants to buy out the Super Bowl and replace it with a Soccer Bowl. We must stop this madness!!!!
John Claude Van Damn: Keep Bud in zee St. Louie. Belgium should sponsor my movies and not ze Bud. Hi ya! I'ma karate chop zis deal.
What will In Bev want next? To move their HQ to the Arch?
This is silly. BUD has had flatline sales growth and is not managed aggressively enough. InBev can take BUD to the next level. It doesn't mean they're going to fire everyone and stop making your favorite watery beer. Why buy it to kill it? You are a bunch of Xenophobes. No wonder the USA is going down the toilet. You live in a global economy - grow up!


-RBB

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PostJun 03, 2008#69

Wabash wrote:innov8ion wrote:
It doesn't matter whether you think the buyout is a terrible idea or not. What matters is that the transaction makes sense for the shareholders of both companies.


I like money just as much as the next American, but what if there is some value in national, regional, and local identity and creativity that is not easily quantiifiable and distributable to shareholders. There are extremely valuable and yet unquantifiable assets that would be devalued if not destroyed by a Belgian acquisition. There is a powerful brand loyalty, nostalgia, and even patriotism that Budweiser evokes. Budweiser is part of St. Louis' identity. They support local charities, support the local economy, support the local tourism/national profile. The free-market economy has its merits, and has made a lot of people rich, but it shouldn't be considered a perfect system.



The shareholders certainly factor into this transaction, but they are not the only ones. I think it is naive, and adhering to a sale-price obsessed system to think shareholder return is the only important element of this sale.
I understand the sentiment but we're a full-on member of the global economy now. Much of America is owned by foreign interests. Don't believe me? Check it out: http://www.economyincrisis.org/content/ownership. I think many of us realize a buyout may not be beneficial to St. Louis. But the shareholders will make the decision and I doubt the majority decision will be based on nostalgia. None of this would have happened if A-B had been more competitive.


Wabash wrote:
It is the truth and any shareholder will know it by seeing what BUD has done for them in the last 8 years. Absolutely zilch


BUD stock has returned about 45% in the last 8 years and about 150% in the last 10 years (both not including recent speculation). Not stellar, but not zilch either.
Right. I should have looked more carefully. 8.7% gain since Sep 6, 2002. Taking inflation into account, that's a net loss during that period.

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PostJun 03, 2008#70

[Removed for violation of Forum Rules and Regulations] 06/03/08

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PostJun 03, 2008#71

^ Wow, name calling. Quite a way to get a point across...very impressive.

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PostJun 04, 2008#72





Anheuser-Busch hires financial advisers

Tue Jun 3, 2008 6:37am BST



PHILADELPHIA (Reuters) - Anheuser-Busch hired Goldman Sachs Group and Citigroup as financial advisers as it braces for a potential takeover bid from Belgian brewing company InBev, sources familiar with the situation said on Monday.



InBev, the world's second-biggest brewer, has not yet decided whether to proceed with a bid for Anheuser-Busch, sources said. A merger of the two brewers has been rumoured for the last 18 months.



Anheuser-Busch, Citigroup and Goldman Sachs all declined to comment. InBev could not be reached immediately for comment.



Anheuser-Busch is "doing all the normal things you do when you feel like you're under attack. You circle the wagons and stockpile food and ammunition," said one source, who declined to be named.



Even if Anheuser-Busch fails to get an offer from InBev, its financial advisers will help explore various strategic options, sources said.



According to media reports, InBev has been trying to arrange a $50 billion (25 billion pound) funding package from a group of banks, including JP Morgan Chase and Banco Santander.



It still is premature to speculate about funding details since InBev has yet to decide on a bid for Anheuser-Busch, one source cautioned.



Yet, given the tight credit markets and the difficulty in raising funding for deals, InBev would need the assurance of financing before it could press ahead with a formal offer, other sources said.



InBev, the brewer of Stella Artois, Beck's and Brahma, is eager to reclaim the title of the world's biggest brewer that it lost to SABMiller earlier this year and drive consolidation in the global brewing industry. Continued...



http://uk.reuters.com/article/businessN ... 5420080603

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PostJun 04, 2008#73

I understand the basics of global economics, but I still see this buyout as disastrous for my hometown. I understand the US beer market is somewhat stagnant, or flat :)- and that sales are growing in Russia and China. I've also read about AB (from their own reports) international sales (http://international-trade-leaders.suit ... obal_sales)

This merger could also affect Mexican markets (http://www.reuters.com/article/ousiv/id ... dChannel=0)



Adam Smith was the first economic theorist to talk about the "invisible hand" of the market and how it balances itself out. But other economists such as Daniel Cohen discuss the importance of local production especially since we're living in an international system where individual states are the most important actors. You have to look out for your own interests. I'm sure that is what the stockholders would do, but I think there is more to consider in this case where the company has built a cultural icon in St. Louis.

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PostJun 05, 2008#74

Thomas Jefferson wrote:Merchants have no country. The mere spot they stand on does not constitute so strong an attachment as that from which they draw their gains.

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PostJun 05, 2008#75

kim_mcgrath13 wrote:Adam Smith was the first economic theorist to talk about the "invisible hand" of the market and how it balances itself out. But other economists such as Daniel Cohen discuss the importance of local production especially since we're living in an international system where individual states are the most important actors. You have to look out for your own interests. I'm sure that is what the stockholders would do, but I think there is more to consider in this case where the company has built a cultural icon in St. Louis.
Anheuser-Busch operations would still be headquartered in St. Louis. When people think of A-B, they'll still think of St. Louis. Just think of post-buyout A-B as a fairly independent subsidiary of InBev. Shared services would likely be handled centrally via InBev to support lean operations.



A disaster? I should think not. Was it a disaster when McDonnell Douglas merged with Boeing? No. Will there be change? Yes. More good than bad.



Such a pity that Anheuser-Busch stock effectively lost value in the last six years. If the company were run more effectively, A-B could have been buying out InBev.

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