Is Diageo next on Inbev’s wish list? 31 Jul 2008 The acquisitive Belgiumbased brewer must still swallow its AnheuserBusch gulp. But CEO Carlos Brito shows such a voracious appetite for deals he s unlikely to be sated for long. A run for the top shelf with Diageo is one possibility unless the distiller makes a move first.
Overseas ambitions won’t supercharge Starbucks 29 Jul 2008 Shuttering US stores may help the troubled coffee chain, but is frantically opening shops in Dubai and Shanghai also part of the answer to its troubles? Problems in Australia suggest not. The company needs to shake its addiction to rapid growth.
Beer gets only a bit-part in Inbev-Bud deal 14 Jul 2008 Inbev s $52bn takeover of AnheuserBusch should please both sides. Bud's shareholders get a good price. Inbev's get value creation. But beneath all the financial logic, the American icon itself looks like an afterthought.
Cooler heads prevail at Bud brewer 11 Jul 2008 AnheuserBusch appears to have reversed its hostility to Inbev's advances, in exchange for a hike in the offer price. It's the right outcome for the US brewer, whose case for a higher standalone valuation looked flimsy. But it might have got there sooner with less mudslinging.
Inbev covets more than just Bud’s suds 9 Jul 2008 AnheuserBusch s iconic beer brand alone doesn t make a $46bn takeover financially appealing. But how about its superhigh tax rate? Factor that into the Belgian brewer s financing and the numbers tell a different story.
Bud shareholders should hope for help from Buffett 8 Jul 2008 The brewer is using a lawsuit and xenophobic defences to try to frustrate Inbev s $46bn bid. But as with Yahoo, such strongarm tactics can backfire. If the board doesn t relent, Bud investors may look for a champion like Buffett to weigh in on their behalf.
Inbev’s proxy battle twists Bud’s top 7 Jul 2008 Inbev, the Belgian brewer, is giving Bud s board a choice. Engage now and win more for shareholders or fight on three fronts: a proxy war, a value battle and a family feud. If Bud takes its investors seriously, it should come to the table now.
Bud pulls out Axis of Evil defence against Inbev 7 Jul 2008 In its latest attempt to fend off the Belgian brewer s advances, AnheuserBusch has highlighted Inbev s venture with the Cuban state. This reeks of desperation and underlines Bud s provincial approach to its business.
Will the real beer synergies please stand up? 1 Jul 2008 Both Inbev and Anheuser have been slippery on potential savings. Bud seems to be saying it can slice $1bn on its own. Inbev suggests $1.4bn in a deal. It s easy to see why both are being coy. Bud doesn t want to admit it s flabby and Inbev doesn t want to look too aggressive.
Anheuser-Busch fails to justify its resistance 27 Jun 2008 The Budweiser brewer has tried to explain its rejection of Inbev's proposal. But its goitalone plan still doesn't get close in value. Bud's hope could be that by resisting for a while it can extract a bigger dowry before succumbing to the union. But its hand isn't a strong one.
Bud will struggle to deliver knock-out defence 26 Jun 2008 AnheuserBusch may think it can pour scorn on Inbev s $65ashare offer. But a look at the numbers suggests that's a stretch. Still, if the US brewer engages with its Belgian predator before it's too late, it should be able to angle for an extra few dollars.
Exclusive: Will Joe Sixpack pummel Inbev’s Anheuser bid? 18 Jun 2008 Political temperatures are rising over the BrazilianBelgian brewer s taste for Bud. Inbev has hired heavyweight Washington lobbyists, including former Senate majority leader Trent Lott, in anticipation of a fight. But a battle much beyond St Louis could damage US markets.
Modelo’s dropping off Bud’s board is wise 16 Jun 2008 The Mexican brewer s CEO resigned from Anheuser s board. That looks smart. Modelo now has several options to improve value for shareholders, including selling itself to the highest bidder or encouraging Anheuser to pay up for its 50% stake. It can explore its options freely now.
Bud shouldn’t bank on Buffett defence 16 Jun 2008 It s hard to see why the billionaire wouldn t back Inbev s $47bn offer for AnheuserBusch. Buffett s threeyear investment in the brewer has gone nowhere. The Sage of Omaha could do worse than take his $2.3bn cash and buy a slab of Inbev stock.
Frustrating merger tactics can sting shareholders 13 Jun 2008 Yahoo inked a search deal with Google last night that acts as a poison pill for Microsoft. Bud looks like it s planning a similar tactic to ward off Inbev by acquiring Mexico's Modelo. Neither offers a better alternative for shareholders who should resist them.
How to raise $40bn of debt in a credit crunch 12 Jun 2008 Who said debt markets were closed? If Inbev s offer for rival Anheuser Busch succeeds, it will need all that debt but still manage to keep an investment grade rating. Even banks wracked by the creditcrunch are helping out. The leverage looks aggressive, but feasible.
Inbev’s $55bn offer puts Anheuser-Busch on the spot 11 Jun 2008 The brewers of Bud will have a hard time rejecting their BelgianBrazilian rival: Anheuser s stock has never traded as high as the price on the table, and the familyled business has shown no signs of getting there on its own. But there s still room for negotiation.
P&G gins up stock price without caffeine 4 Jun 2008 The consumer goods giant is selling its Folgers coffee brand to JM Smucker for $3.3bn. The anticipated sale may sound like a yawn. But the deal s taxefficient structure encouraged investors to add some $3bn of value to P&G s market cap.
Bud’s alternative to a takeover? An activist 30 May 2008 The king of beers faces a potential $46bn unsolicited bid from Inbev. But the Belgian brewer would add little value beyond slashing costs. Bud can do that itself. If it won t, some Peltzstyle activism may be in order.
Could Inbev use SAB to crack open Bud? 28 May 2008 If the BelgoBrazilian brewer is spurned by Anheuser, it could always bid for SABMiller instead. Molson might then snap up Miller, putting Bud on the defensive and weakening its independent resolve down the road, when Inbev comes back for another swoop.