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The InBev/Busch Discussion Thread


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This development is likely bad news for the theme parks. InBev will almost certainly try to sell the parks if the takeover happens. I was hoping the takeover would fail but this article suggests that the deal is done. My guess is that InBev-AB will spin off Busch Entertainment aka Worlds of Discovery into an independent company because I don't think there are any buyers. And then we'll see the quality of these parks go downhill.

 

The Wall Street Journal Article is below:

 

InBev Boosts Offer for Anheuser-Busch

By DENNIS BERMAN, DANA CIMILLUCA and DAVID KESMODEL

July 11, 2008 9:53 a.m.

 

InBev NV boosted its takeover offer for Anheuser-Busch Cos. by $5 a share to $70 in an effort to seal a friendly deal with the iconic U.S. brewer, a person familiar with the matter said.

 

After weeks of escalating tensions since InBev launched its $46 billion takeover offer for Anheuser a month ago, the two sides are negotiating a friendly deal, according to people familiar with the matter. Anheuser's board is likely to accept the new offer, which amounts to about $50 billion, this weekend, one of the people said, adding that so-called social issues including what the combined company would be called still need to be worked out.

 

Anheuser and InBev spokespeople couldn't immediately be reached.

 

Anheuser officially spurned InBev's $65-a-share offer two weeks ago, saying it "substantially undervalues" the company.

 

News of the new offer comes just days after InBev signalled its willingness to make a hostile takeover offer if necessary. On Monday, the Belgian brewer put forward a slate of directors to replace Anheuser's board. It said that "to date, Anheuser-Busch has been unwilling to engage with in a dialogue." Anheuser subsequently filed suit against InBev, accusing it of making false and misleading statements.

 

A lukewarm response from Anheuser shareholders to the company's defense strategy may have contributed to its willingness to open negotiations. When Anheuser rejected InBev's offer, it announced a stepped-up cost-cutting program aimed at boosted its share price.

 

Besides the cost and time a protracted takeover fight would entail, a friendly deal could help InBev keep key Anheuser management in place and avoid alienating the U.S. company's distributors, a person close to the deal said.

 

The combination would create the world's largest brewer with net sales of about $36 billion annually. The two giants market about 300 brands on six continents, producing in total 10 billion gallons of beer each year. InBev and Anheuser are the second- and third-largest brewers in the world in terms of volume, respectively, after London's SABMiller PLC.

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This will be interesting to watch and see what happens with the

Busch Parks. I honestly wouldn't be surprised if they are sold to Disney. It would give Disney parks in Texas (rumored building site for Disney for years now) and in Virginia which was the site of Disney's failed America park concept. Plus they would now own several more parks in Orlando and central florida... I could see it working

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I just don't see anyone buying the parks. Disney doesn't want to water down their brand by adding six new parks in my opinion. As someone said before, they probably will just spin off the parks into their own company. Lets hope the current management stays in place.

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As long as Cedar Fair doesn't show an interest I'm okay!

 

Seriously though, like others have said, I'm guessing they will spinoff into their own entity with most of the current management still in place.

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As long as Cedar Fair doesn't show an interest I'm okay!

 

Seriously though, like others have said, I'm guessing they will spinoff into their own entity with most of the current management still in place.

 

What? You don't want them to rename Montu to Flight Deck?

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I wondered also why they didn't mention the lawsuit. The diluting of their brand is the only reason I could see Disney not buying them, but then again, who knows. It would be interesting to see what Disney would do to the Gardens and Sea World parks either way.

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Disney doesn't acquire parks....they build them. And personally, I hope it stays that way. Although, theoretically, I agree that they might seemingly be the only logical choice capable of continuing the level of commitment that Busch has established with their lineup.

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I'm surprised they didn't mention the fact that Anheuser Busch has filed a suit against InBev's tactics. This is going to be ugly any way you slice it.

 

I saw another article that did explain InBev's move recently to remove A-B's board, and then A-B's lawsuit.

 

But apparently the increased offer to $70 makes it all moot and they're going to cozy up to each other now.

 

If anything gets ugly, it will be drama we see from the people and politicians of Missouri (and across the USA) who are loudly vowing to block any takeover of an American icon.

 

I for one am going to write to A-B and InBev as a shareholder and express concern for the parks.

 

-Martin

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Hmm.....I have no idea how this will play out.

 

Since I worked at BGW from 1994-97 and BGT since 2003, I know first hand the commitment to quality in the parks. Little things to some people such as landscaping and strict guidelines as far as food quality go are second to none in this business.

 

I was just at Aquatica yesterday and was amazed yet again at the theming and basic quality overall. I really hope if the sale goes through that AB will hold onto the parks and run them the way they have been run.

 

I know Disney would not be interested in the parks. If they did buy them, they would probably turn around and close them down to avoid the competition in the Orlando market.

 

First the housing crisis, high gas prices, and now this! I am ready for a change of news (and soon!)

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Say goodbye.

 

*Lawsuit was before they upped buyout offer and more of a handling issues then would be related to the new offer.

 

Too good of an offer, but…

Only way out is to orchestrate with the likes of a powerhouse of investors to offer a matched or slightly higher offer (50 cents higher, boy that would piss them off) and accept the offer (kind of late for this tactic), or continue along the Yahoo path and see what happens.

 

Other long shots, the government in which a couple members or government have been vocal and could make this a nightmare to purchase, unlikely but hey anything is possible with our government nowadays

 

I think this is a sold personally.

If I was to make the call “I” would fight but money talks.

Reason #..... Why our company will never be publicly traded.

 

Time will tell, but one thing I believe will be certain the parks will be sold under new ownership. As for why, increased debt that could be offset by non core operations make for happier balance sheets. Not many companies are capable of handling such a diversity of operations.

 

Now the really crappy part, if the parks where sold most likely it would be overseas buyers as not too many chains if not only 2 companies in this country could afford such a purchase. Disney would never even look twice as if once, and GE..

 

GE might still be seeing the potential in revenue from the amusement industry but unfortunately Busch Parks will not come with a media related, etc. from purchase. But then again could the trademarks and rights alone be enough to gain attention by GE for consideration not to mention global operations? (All purchases are viewed in terms of gain, including trademarks, etc. When you buy, you buy the nuts and bolts too. Hey anything that could make a dime) GE also has major market loss right now so I would also find them doubtful but who knows.

 

Sucks if they except, and I hope they fight!

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Yeah, like others have touched on the weirdest part about all of this is how USA centric AB is, and for them to sell off to a foreign country reminds us all that money is at the root of everything!

 

Seriously, remember when the Shamu show changed from shamu to 'Salute to America'...seriously, you barely saw the damn fish, just USA this and USA that! It felt very awkward. Aren't there also pro-USA troop and random saying stuff in the restrooms?

 

Should be interesting to see what happens.

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Disney doesn't acquire parks....they build them. And personally, I hope it stays that way. Although, theoretically, I agree that they might seemingly be the only logical choice capable of continuing the level of commitment that Busch has established with their lineup.

 

They tried to buy Knott's. Though yeah, don't think they'll be interested in such a complex portfolio of parks.

 

I'm hoping for a spin off. I can't see the AB parks fitting in well with any of the major theme park operators.

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Why do some people think Disney would be interested in buying the BEC parks? I mean I don't really think they would care for the parks. Maybe Discovery Cove and perhaps Sea World Orladno. But I Highly doubt it. Plus that would create a monopoly in the Orlando area, only having Universal as a competitor.

If the parks were to be sold I hope is Herschend or Parque Reunidos to buy them or even Nakheel. Even though they are more of a real estate company, I think they could venture out to the Entertainment Business and give it a try with the BEC parks.

But I would prefer BEC to be its own company, I thi k they could pull it off. And with 4 new parks being built in Dubai I think they would be able to get a lot of money to sustain them further in the future.

 

I hate this reality

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Parques Reunidos would be the best operator if Busch parks were to be sold, since they let the management in place and already own some nicely themed parks like Parque Warner Madrid or Mirabilandia who didn't lose any ounce of their identity in the process. I'm afraid this would be too much of a big fish for them though...

 

I'm also intrigued about what would happen of all the über-patriotic stuff the parks have and do...

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I'm surprised they didn't mention the fact that Anheuser Busch has filed a suit against InBev's tactics. This is going to be ugly any way you slice it.
Yeah, I'll laugh my ass off if the sale goes through, and the government steps in and says something about Cuba.
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Why do some people think Disney would be interested in buying the BEC parks? I mean I don't really think they would care for the parks. Maybe Discovery Cove and perhaps Sea World Orladno. But I Highly doubt it. Plus that would create a monopoly in the Orlando area, only having Universal as a competitor.

If the parks were to be sold I hope is Herschend or Parque Reunidos to buy them or even Nakheel. Even though they are more of a real estate company, I think they could venture out to the Entertainment Business and give it a try with the BEC parks.

But I would prefer BEC to be its own company, I thi k they could pull it off. And with 4 new parks being built in Dubai I think they would be able to get a lot of money to sustain them further in the future.

 

I hate this reality

 

Technically, it would be a Florida oligopoly

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Anheuser, InBev move closer to deal: sources By Jessica Hall and Martinne Geller

 

 

PHILADELPHIA/NEW YORK (Reuters) - U.S. brewer Anheuser-Busch Cos Inc (BUD.N)moved closer to a friendly, $50 billion takeover by Belgium-based InBev NV (INTB.BR), sources familiar with the situation said on Sunday.

 

An announcement could be made as early as Sunday night for a deal that would create the world's largest beer maker, said the sources, who spoke on condition of anonymity.

 

Negotiations could continue beyond Sunday, however, as many details were being tackled quickly, the sources cautioned. But the major issues regarding the price, board structure, and executive roles had largely been resolved, the sources said.

 

InBev, the maker of Stella Artois, and Budweiser-brewer Anheuser declined to comment.

 

A deal would bring an amicable resolution to a month-long saga that was becoming increasingly hostile as the two companies sued each other and InBev set the stage to try to replace Anheuser's board of directors.

 

InBev had proposed its own slate of nominees for the board that included Adolphus Busch IV, an uncle of the current chief executive of Anheuser-Busch.

 

InBev lured Anheuser to the bargaining table last week by raising its offer to $70 per share from $65 per share, a 27 percent premium over Anheuser's record-high stock price in October 2002.

 

Shares of InBev and Anheuser surged on Friday as news of the higher offer and the negotiations emerged. Anheuser closed up 8.6 percent at $66.50, and InBev closed up more than 7 percent.

 

The two companies and their advisers talked in New York over the weekend, working through details such as the name for the combined company, roles for Anheuser's executives and the structure of the board, the sources said. The breakup fees if the deal collapses also were discussed over the weekend, the sources said.

 

"This deal is a cake, baked and ready to be taken from the oven. We wait only for the icing," said Tom Pirko, president of Bevmark, a beverage industry consulting firm based in California. "Let's get on with it."

 

InBev had tried to soothe some of Anheuser's concerns last month, saying it would keep Anheuser's St. Louis, Missouri, home as the headquarters for the North American region. Anheuser's main Budweiser beer would also become the new company's "flagship brand."

 

InBev also had said the new brewer's name would "evoke Anheuser-Busch's heritage," and some Anheuser directors would join the new board. InBev had promised to maintain all of Anheuser's U.S. breweries, but Anheuser wants InBev to make firm commitments to its largest U.S. distributors, one source said.

 

Last week, the director of the Brewery and Soft Drink Workers Conference of the International Brotherhood of Teamsters asked to meet with InBev Chairman Peter Harf and InBev Chief Executive Carlos Brito, according to a letter posted on the union's Web site http://www.budwatch.com.

 

Led by Chief Executive Carlos Brito, InBev is known for ruthless cost-cutting.

 

The union, which represents workers at all 12 of Anheuser's U.S. breweries, asked for the meeting to discuss the initial offer so it could "fulfill our responsibilities to advise and protect our members."

 

It was unclear if InBev and the union met.

 

A takeover of iconic U.S. company Anheuser had sparked an outcry from some politicians, including Democratic presidential candidate Barack Obama.

 

Any deal with Anheuser is complicated by its relationship with Mexico's No. 1 brewer, Grupo Modelo (GMODELOC.MX), which makes Corona, and 27 percent of China's Tsingtao Brewery Co Ltd

 

 

Modelo, already 50 percent owned by Anheuser, has the right to choose its partner and therefore has a role in the discussions of any acquisition of Anheuser-Busch. Modelo could not be reached for comment.

 

Analysts have said that Modelo is likely to embrace InBev's bid for Anheuser and hopes the Belgian brewer proves to be a more dynamic and innovative partner than the biggest U.S. brewer.

 

While Anheuser controls nearly half the U.S. market with brands like Budweiser, Bud Light and Michelob, InBev has strong positions in Western Europe and Latin America and is growing in Eastern Europe and Asia.

 

InBev, which was formed by the 2004 merger of Belgium's Interbrew with Brazil's AmBev, is based in Belgium and run by a mostly-Brazilian management team.

 

Hmmm.....

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WHAT IS HAPPENING?!!! This country is no longer American. it's just called the USA, but it's run by foreigners.

 

It's an extremely sad day when the last known iconic AMERICAN company is in the hands of foreigners. They're only saying what the American people and AB want to hear, it doesn't mean that they'll follow suit.

 

If they want the name to represent the heritage of AB, then the name should be Anheuser-Busch. I don't know what other name could take the place of it.

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