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Anheuser-Busch Takeover Faces Opposition

 
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    InBev CEO Carlos Brito

    InBev CEO Carlos Brito was reportedly slated to meet with U.S. lawmakers Tuesday afternoon to address concerns about the Belgian brewing giant's proposed $46 billion bid for Anheuser-Busch.

    The meetings with lawmakers, which were reported by the Wall Street Journal, comes as politicians and consumers expressed anxiety about the iconic St. Louis-based brewer losing its 132 years of independence. 

    Sen. Claire McCaskill, D-MO, who was reportedly among the lawmakers Brito planned to meet with, said Tuesday she will do everything in her power to “stop the sale” of Anheuser-Busch (BUD), citing concerns about Missouri jobs and worker pensions, according to Reuters.

    InBev said in a statement Tuesday the $65 per share offer is the "full price" and "that's it." InBev also said it has the "highest respect" for Anheuser-Busch, its employees and leadership and is committed to explaining how it plans to grow and preserve the brand.  

    Carlos Brito, inBev CEO

    Born in 1960

    Brazilian citizen

    Degree in Mechanical Engineering from the Federal University of Rio de Janeiro

    MBA from Stanford University

    InBev CEO Since December 2005

    Source: InBev.com

    InBev, which was formed in 2004 by a combination of Belgium’s Interbrew and Brazil’s AmBev and makes Stella Artois and Beck’s, has a reputation for cost-cutting strategies such as layoffs and slashing advertising budgets. 

    The tough talk from McCaskill comes a day after Missouri Gov. Matt Blunt urged the Federal Trade Commission to investigate the proposed sale on fears a deal would create a beer monopoly in the U.S. market and hurt the Missouri economy. InBev and Anheuser are the second and third largest brewers globally after SABMiller.

    Anheuser-Busch, which makes Budweiser and Bud Light, has yet to respond to the $65-a-share offer from InBev but has reportedly been in talks with Grupo Modelo, the Mexican brewer of Corona. Anheuser-Busch already has a 50% stake in Modelo and could look to acquire the rest to make itself too expensive to be swallowed by InBev.

    InBev wrote a letter over the weekend discouraging Anheuser-Busch for the reported flirtations with Modelo.

    "We believe it is important for you and your board to understand that our proposal to combine with Anheuser-Busch...for $65 per share in cash is made on the basis of Anheuser-Busch's current assets, business and capital structure," Brito wrote.

    Anheuser-Busch refused to comment on the InBev letter but said it will continue to evaluate the offer “in the context of all relevant factors, including Anheuser-Busch’s long-term strategic plan.”

    McCaskill also reportedly said she “is not aware” if billionaire investor Warren Buffett endorsed the InBev deal. Citing sources, Belgian newspaper De Standard reported Buffett supports the takeover. His Berkshire Hathaway holds a 5% stake in Anheuser.

     

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