Bye Bye BUD...Or is it Buy Buy?
posted 06/17/08 10:20 AM
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Viewed 144 times
The title of course references an old Everly Brothers song, (man I'm getting old), but brings up something I'm sure a lot of us thought would never happen. Budweiser will no longer be an American company. For all of my years, and many of those older than me, Budweiser has been an icon of weekends in front of the TV watching the big game and various other leisurely activities where a nice cool alchoholic beverage fits in nicely. Now it appears, InBev, formed by the merger of InterBrew and AmBev, located in Belgium will eventually be taking over this once purely American company. Of course the plans are to retain much of the existing American infrastructure for brewing this liquid gold, but as with any of these types of situations, there will be duplication, layoffs, reduction, amalgamation, etc. The only question now is what will the stock be worth in the buyout offer? As I write this, BUD is trading at around $61.00 a share with a buyout price of $65.00 a share on the table or at least being talked about. Short term buyers should love this kind of scenario, with an almost guaranteed profit, if you get in now that is. However, long term no can say how the buyout will affect sales and overall growth and what may have been a good local company to invest in, now becomes a much larger behemoth that may or may not be a good choice for your portfolio. I suppose while you contemplate your decision, you could drink a few brewskies and at least temporarily help the bottom line. To get you started, have a Bud on me....\b/
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