A bitter battle for control of Anheuser-Busch appears to be looming after the brewer, one of the nations most prominent family-run companies, formally became the target of a $46.4 billion unsolicited takeover offer from InBev of Belgium on Wednesday.
But InBevs bid to take control of Anheuser-Busch, which has been led by the Anheuser and Busch families for 148 years, could get nasty. The St. Louis-based company, led by a scion of the Busch family, August A. Busch IV, has signaled that it will fight a takeover. In recent weeks, in anticipation of InBevs bid, privately called Project Aluminum, Anheuser-Busch has hired an army of bankers, lawyers and other advisers to help it mount a defense, The New York Times reported.
The battle may stir a national debate filled with patriotic fervor over a company ingrained in the American consciousness. Anheuser-Busch spends more money than any other advertiser during the Super Bowl each year; last year alone, it spent $23.9 million, according to TNS, a market research company.
The bid could also put Warren E. Buffett, Anheuser-Buschs second-largest shareholder after August A. Busch III, a former Anheuser-Busch chairman and chief executive, in the middle of a struggle.
Gov. Matthew R. Blunt of Missouri said in a statement Wednesday that he opposed any sale. Todays offer to purchase the company is deeply troubling to me, he said, adding that he was directing the states department of economic development to explore ways to keep Anheuser-Busch in St. Louis.
A deal, if reached, would combine Anheuser-Buschs best-selling Budweiser and Bud Light brands with InBevs Stella Artois, Becks and Bass and would create the worlds largest brewer, with distribution channels around the globe.
According to The New York Times, two InBev directors approached Mr. Busch about a deal during a secret meeting in Tampa, Fla., on June 2.
The meeting, which people who were briefed on it told The Times was polite and short, was a prelude to InBevs formal offer, made in a letter to Mr. Busch and Anheuser-Buschs board. InBev said it hoped to reach a friendly deal and, in that spirit, said that it hoped to keep the contents of this letter private. Within hours, however, word had spread across Wall Street, and Anheuser-Busch chose to make the bid public.
http://dealbook.blogs.nytimes.com/2008/06/12/bid-may-spark-battle-royale-for-anheuser-busch/?hp
But InBevs bid to take control of Anheuser-Busch, which has been led by the Anheuser and Busch families for 148 years, could get nasty. The St. Louis-based company, led by a scion of the Busch family, August A. Busch IV, has signaled that it will fight a takeover. In recent weeks, in anticipation of InBevs bid, privately called Project Aluminum, Anheuser-Busch has hired an army of bankers, lawyers and other advisers to help it mount a defense, The New York Times reported.
The battle may stir a national debate filled with patriotic fervor over a company ingrained in the American consciousness. Anheuser-Busch spends more money than any other advertiser during the Super Bowl each year; last year alone, it spent $23.9 million, according to TNS, a market research company.
The bid could also put Warren E. Buffett, Anheuser-Buschs second-largest shareholder after August A. Busch III, a former Anheuser-Busch chairman and chief executive, in the middle of a struggle.
Gov. Matthew R. Blunt of Missouri said in a statement Wednesday that he opposed any sale. Todays offer to purchase the company is deeply troubling to me, he said, adding that he was directing the states department of economic development to explore ways to keep Anheuser-Busch in St. Louis.
A deal, if reached, would combine Anheuser-Buschs best-selling Budweiser and Bud Light brands with InBevs Stella Artois, Becks and Bass and would create the worlds largest brewer, with distribution channels around the globe.
According to The New York Times, two InBev directors approached Mr. Busch about a deal during a secret meeting in Tampa, Fla., on June 2.
The meeting, which people who were briefed on it told The Times was polite and short, was a prelude to InBevs formal offer, made in a letter to Mr. Busch and Anheuser-Buschs board. InBev said it hoped to reach a friendly deal and, in that spirit, said that it hoped to keep the contents of this letter private. Within hours, however, word had spread across Wall Street, and Anheuser-Busch chose to make the bid public.
http://dealbook.blogs.nytimes.com/2008/06/12/bid-may-spark-battle-royale-for-anheuser-busch/?hp