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InBev To Drink Up Bud?
By JD Bluefield | May 23, 2008
Looking at the stocks I follow and own, most everything go trashed today, except one. That would be BUD (Anheuser-Busch Companies, Inc).
Today it was announced by dozens of news sites that InBev may buy Bud for an estimated $46 Billion, financed by JP Morgan. This works out to around $65/share, and explains the sudden $3.55 (6.75%) spike straight to $56/share this morning. InBev has not yet made a formal offer, and as we’ve seen with the Microsoft-Yahoo! debacle, this deal can still sour more than the mash they produce. This mega-merger would reportedly produce 1/4 of the worlds beer and allow InBev further distribution of their beers in the US. So keep your ear to the grind stone, as more will definitely be coming out in the news.
Update: That spike is now over $4 or 7.55%. BUD closed at 56.61 +4.03 (7.66%), speculation will probably push it closer to the buy-out price. If you aren’t already invested in BUD, I wouldn’t jump in now. If the InBev deal doesn’t come to fruition or falls through, BUD will drop dramatically back to previous levels. So best to sit on the sidelines than gamble on the future.
Topics: Investing |
One Response to “InBev To Drink Up Bud?”
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May 23rd, 2008 at 6:13 pm
The buyout makes sense for InBev. They stand to gain control over their brands in the USA and avoid a costly battle. Anheuser-Busch does all of their brewing for them in the USA. With a weaker dollar this makes it a bargain. http://www.anheuser-busch.com/BeerVerified.html