Anheuser-Busch says that is going to fight a takeover bid by Belgian brewer InBev by cutting staff and finding savings of over $1 billion, the St. Louis-based brewer announced today. They also plan to increase profits and repurchase stock.
From CNNMoney:
“The Anheuser management is trying to say they are going to do everything that InBev’s management would do,” said Morningstar analyst Ann Gilpin. Gilpin raised questions on why Anheuser didn’t lay out its latest proposal prior to the InBev bid. “Either you low-balled it or you are really stretching it,” she said.
Anheuser is going to find it hard to convince shareholders that they are better off accepting the strategic plan, over InBev’s cash offer she said. “I think shareholders would rather take cash,” she said
Here’s A-B’s official statement:
“InBev’s proposal significantly undervalues the unique assets and prospects of Anheuser Busch,” said Patrick Stokes, chairman of the board for the company. “The proposed price does not reflect the strength of Anheuser-Busch’s global, iconic brands Bud Light and Budweiser, the top two selling beer brands in the world, with Budweiser selling in more than 80 countries today. The proposal also undervalues the earnings growth actions that the company had already planned, which have significant potential for shareholder value creation; the company’s market position in the United States, the most-profitable beer market in the world; and the high value of its existing strategic investments.”
Our recent reader poll shows that the majority of our readers don’t really care if InBev takes over A-B, but there are groups who certainly seem to.
UPDATE: Anheuser To Cut Costs, Challenge InBev On Directors [CNNMoney]
Anheuser-Busch Rejects InBev Proposal as Financially Inadequate, Not in Best Interests of Shareholders [A-B]
More From Consumerist
-
Beer Giant Anheuser-Busch Set To Gorge Itself With Expected Takeover Of Grupo Modelo
-
DOJ Tells Anheuser-Busch It’s Had Enough To Drink & Should Put Down That Grupo Modelo
-
Anheuser-Busch Wins Another Budweiser Round In 100-Year Fight Against Czech Brewer
-
Anheuser-Busch & Czech Brewer Continue 100-Year Fight Over Budweiser Name
-
Anheuser-Busch Mocks Watery Lawsuit In New Ad: Maybe You Just Drank Actual Water?
@Bladefist: What’s so crazy about the asteroid thing?
I get a laugh when I go to Europe and see people pay extra for a Bud (can’t use the Budweiser name they “borrowed”) because it’s an “import”.
@failurate: The best comment on any post I’ve read today.
Besides, I have no problem with brand loyalty. Budweiser is a great American brand and has lasted, so they must be doing something right.
In the interest of full disclosure, however, I do not drink Budweiser (unless somebody hands me one). I prefer small(er) regional breweries — I’m in New England. I drink a lot of Harpoon. And I have to say that I think the Bud commercials (with the David Puddy stunt-double) are absurd when he says of Bud: “In a lighter beer, you can’t mask imperfections like you can in a dark, heavier beer.” Hidden imperfections? Like what, a floating mouse head??
@nequam: Well he is kinda right. I would revise his statement to say:
Lighter beers are much easier to screw up. You can screw up a heavy beer and just put a different label on it. If you screw up a light beer, it taste like arm pit.
@Bladefist: But…. ALL beer tastes like arm pit….
Hey, no one blamed the victim yet!
Oh, I’m so sad for McCain’s wife.
@Bladefist: Part Baptist/Methodist upbringing, part I just can’t stand the smell of it.
I get my kicks on Diet Pepsi Max though.
A buyout like that is a risk of being publicly traded. Don’t want it? Do what you need to go back to being private.
Looks like they still want it to be public, and are willing to screw over their employees for it. Surely that inspires loyalty, don’t it?
@jdmba: damn those employees! OK, I did it.
I’d like to keep AB American. However, Im a Miller fan and live in a Miller-dominated city.
@LmaoTseTung: I’ve tried enough beers to know what I like.
If you live in the Chicago, Milwaukee, Madison area, here is a cool event for beer lovers.
[www.greatlakesbrewfest.com]
If a buyout favorably helps the value of my Bud stock, I’m all for it.
I hear Bud is switching to plywood aging to cut costs.
Anheuser Busch will be cutting staff to work to reject the bid. Ha!
“Firing people to save America!”
@battra92: I can respect that. I love beer. Don’t love being drunk. If I could drink and not get drunk, that would be fantastic.
I’m catholic though, it’s kind of my religious duty to drink. Just trying to do my part.