Jul
16
2008
In today’s posting, Sarah Nunnally, Editor of Taipan Trader, takes on your faithful editor Irwin Greenstein for his rant in the July 2nd issue about InBev’s move on Anheuser Bush. Feel free to ad your comments about the acquisition of a great American brand by a Belgian company.
Done is done, Irwin… No use crying over spilled beer.
Anheuser-Busch (BUD:NYSE) has agreed to the takeover terms by InBev SA (INBVF:PINK)
The deal is worth $52 billion. That’s a steal, if you ask me. Thanks to the dollar’s fresh demise (new lows against the euro), InBev is spending only 32.5 billion euros. A year ago that price tag would have been 37.7 billion euros, and that’s the main reason why InBev can afford to buy BUD now.
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Jul
02
2008
Budweiser and Busch are as American as camo seat covers in a F-150.
Yet a hostile offer by InBev SA (Brussels:INB.BR) on Anheuser-Busch (NYSE:BUD) is about to show us that the star-spangled King of Beers is up for play because it ignored emerging markets.
When you look at the dynamics behind the InBev bid, it’s important to see America as a diminished player. The headlines tell you that the economy is dismal. What Big Media rarely tells you is that smaller, developing economies are kicking our butt. American companies that count strictly on the U.S. for revenues are destined for the rustbelt of the future — or a foreign buyout.
Analysts have been badgering A-B for years that it relies too heavily on the U.S. — one of the slowest growing beer markets in the world. A-B has buried its head in the sand as InBev and other competitors have pushed into high-growth emerging markets.
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