In a move that has surprised many (including us) it’s been reported that Anheuser-Busch plans to reject InBev’s unsolicited $46.3 billion takeover offer, saying it undervalues the company.
From Drink American, our buddy site:
It is with great pleasure that we would like to officially stand-down from the Anheuser-Busch boycott that we were suggesting take place on Independence Day. Those that had pledged to stand by our boycott understood the importance of dissuading members of the Anheuser-Busch board of directors from selling the All-American company to a foreign entity.
We would like to suggest that a boycott of all InBev products continue, as a rejection from Anheuser sets the stage for InBev to either raise its bid (as high as $70 a BUD, by some reports) or take its bid directly to shareholders — options InBev is likely to pursue. A list of all InBev products can be found here and a list of 12 great American beers for the Fourth of July can be found here.
In rebuffing InBev’s offer, Anheuser-Busch plans to map out its own restructuring plan soon that would include the sale of the company’s theme park operations, The Wall Street Journal reported.
The plan also would include layoffs, more than $500 million in cost-cutting efforts and the sale of Anheuser-Busch’s packaging unit, the New York Times added. Both are some unfortunate side-effects.
Billionaire investor Warren Buffett, whose Berkshire Hathaway is Anheuser’s second-largest shareholder, told CNBC on Wednesday that he viewed the beer battle as “an interesting spectator sport” but had not thrown his support behind either side.