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June 12, 2008

Raise a glass to cheer the BUD deal

Overnight, InBev, one of Belgium's biggest brewers with brands like Beck's and Bass, offered to buy Anheuser-Busch, the makers of Budweiser for an estimated $46.4 billion.

That equates to about $65 a share for Bud's stock owners, a $15 premium over where the stock was trading just about two weeks ago.

The stock has already jumped to over $62 on the news this morning.

Two thoughts on this:

1. I own BUD. I bought it about five years ago...at $50, meaning there has been no price appreciation on my stock during that time. I have had other investments up over 100%, including one very established company *cough*Nike*cough*, yet BUD has remained flat.

I don't have confidence in the ownership to get the stock to $65 on their own. The only way I am going to get that type of premium on my purchase anytime soon is to approve this deal if or when it comes to a vote.

I am all on the side of "Yes" on this one.

2. If the deal goes through, the largest domestically-owned beer brewer will be Sam Adams. The Boston Beer Co., a craft brewer!

Something about that makes me feel good.

In 2007, the craft brew industry grew 12 percent and there is no doubt that the companies in that sector are turning out better product than the big boys, who would now all be owned by foreigners.

It would be a return to the roots of brewing in the U.S., if only in name since we all know that Bud, Miller and Coors will continue to be thought of as American beers.

So with that, I raise a glass to this deal going through, a glass I can pay for with my profits.

This entry is tagged: beer, Budweiser, business, Coors, InBev, Miller, profits, purchase deal, Sam Adams, stocks

Posted by bmiraski at June 12, 2008 9:01 AM