Thursday, June 26, 2008

Crisis Delayed not Averted...Yet

Anheuser Busch is reported to be announcing it's rejection of the unsolicited take over bid from the Belgium company InBev.
Pirko said a rejection from Anheuser sets the stage for InBev to either raise its bid or take its bid directly to shareholders -- options he said InBev is likely to pursue.

One possible course of action now for InBev is to raise their offer and go directly to the shareholders with their offer. If Anheuser Busch shareholders are presented with an offer it will be interesting to see how they react. Remember whenever it is the evil CEO and corporate board of directors who agree to these kinds of mergers and buyouts it is always a bad thing and a sign of corporate greed. Will the average shareholder when presented with making the same choice stand on principle or will they too sell out to the highest bidder? It will be interesting to watch just to see how the shareholders react when the money gets high enough.

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