Some interpretations and analysis on some of the major points brought up:
Further: Let’s end now speculation that InBev, should they acquire the site, will shutter the doors on Lynch Street. There is way too much invested capital in here, especially talent pools, facilities operations, and the cleanest water in the country, the same water that Pepsi sells as Aquafina.
EDIT: I defer comment to those with better knowledge on the subject.
EVERYONE: Why does InBev want BUD?
To gain market share in the US, a supersaturated and mature market? No.
For footholds into international markets/ Yes.
To leverage superior brand awareness? Yes.
Will BUD fight them all the way? You bet your ass.
What will InBev do? Pass on Bud and acquire Coors/Miller when enough financing is in order. You think they have all these billions just sitting around with a banker ready to make big allocations of capital, in these global markets? Nope, cash is king, and the King of Beers is very expensive. Miller, I believe, is a more likely takeover target compared to BUD.
This whole thing is, I bet, a ruse to mislead potential rival bids from established Private Equity groups, especially those fueled by Sovereign Wealth Funds, such as Blackstone and Kohlberg Kravis Roberts.
Fault of the City? No. There is no “fault”; this is speculation on an acquisition of a publicly-traded company, and unfounded speculation at that. Otherwise, I agree with assessments with reliance upon sustainable income streams and the need to diversify revenue sources.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.
Further: Let’s end now speculation that InBev, should they acquire the site, will shutter the doors on Lynch Street. There is way too much invested capital in here, especially talent pools, facilities operations, and the cleanest water in the country, the same water that Pepsi sells as Aquafina.
Yes, but option strikes aren’t triggered until that future date. Until then, these are non-events and non-assured revenues. If the City could extend its taxation reaches under the guise of Earnings Taxation into option strikes, then I would think it harder to locate corporate HQs in the City than ever before.bonwich wrote:Law of unintended (well, at least we think they're unintended) consequences: Ever since the BofA flim-flammed the City by giving back options-exercise earnings taxes, the City has lost millions when companies have been bought out and options were exercised (Nestle, the banks). And this one will be the granddaddy of them all, with hundreds of millions in options exercise not being subject to the tax.
EDIT: I defer comment to those with better knowledge on the subject.
Wrong. An increase in traded stock valuation in potential anticipation of acquisition does not mean a buyout will occur, nor market confidence that it will occur. It is both an anticipatory hedging and profit-taking from the sheep.innov8ion wrote: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?
EVERYONE: Why does InBev want BUD?
To gain market share in the US, a supersaturated and mature market? No.
For footholds into international markets/ Yes.
To leverage superior brand awareness? Yes.
Will BUD fight them all the way? You bet your ass.
What will InBev do? Pass on Bud and acquire Coors/Miller when enough financing is in order. You think they have all these billions just sitting around with a banker ready to make big allocations of capital, in these global markets? Nope, cash is king, and the King of Beers is very expensive. Miller, I believe, is a more likely takeover target compared to BUD.
This whole thing is, I bet, a ruse to mislead potential rival bids from established Private Equity groups, especially those fueled by Sovereign Wealth Funds, such as Blackstone and Kohlberg Kravis Roberts.
