Bud Board Backs Busch by Blockheadedly Blackballing Belgian Brazilians
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Disappointingly, but unsurprisingly, Anheuser-Busch will reject InBev's takeover bid. Will they do so by promising shareholders much more value as an independent company? It's hard to see how they could do that while maintaining a straight face. Will they wave the patriotic flag and say they're protecting jobs in the heartland? No, that doesn't seem likely either:
In its effort to justify rejecting InBev's $65 a share bid, Anheuser-Busch is expected to announce a massive reorganization to boost profits that includes cutting more than $500 million in costs...
The reorganization may anger some locals and politicians in St. Louis who had been pressing Anheuser-Busch to reject the bid, in part, to save local jobs. The reorganization is expected to include scores of job cuts.
I'm not sure what "scores of job cuts" means, but even before it's officially announced there's quite obviously nothing compelling about the alternative being mooted by the Anheuser-Busch board. By forcing InBev to go hostile, all they will achieve is a lot of unhelpful fighting on the way to an inevitable conclusion. Sad.
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This article has 4 comments:
So Brito this Bud's not for you .......
CEO James Forese, Former Ambassador and Congressman James Jones, William Porter Payne, Joyce M. Roche, Former chairmen of the Joint Chiefs of Staff Henry H. Shelton, CEO of Enterprise Rent-A-Car Andrew Taylor, Former Chairmen and CEO of JP Morgan - Douglas A. Warner III, and former AT&T CEO Edward Whitacre Jr.
Just curious, as you are obviously smarter than these individuals, what boards do you reside over???
The 4th understands the changes in beer drinkers taste ( bud light lime is a huge hit) the new Michelobe brand which is now being marketed will take away from the micro brew crowd once they taste these superior brews. IMHO the future looks very bright for AB also historically under slow growth times as we now have beer consumption will rise, not only here but globally.
Ive been a share holder for years and AB has been a steady, solid stock to have.
INBEV would destroy the brand if it succedes in its hostile take over.
I also question their $40 billion loan on an $46 bil purchase,,sounds to me like taking on HUGE debt that would not be sustainable unless AB is taken apart piece by piece. Maybe its blockheaded thinking to you but to the board this is also what they must consider.