By Ian Neubauer
Anheuser-Busch’s (A-B) head brewer has lost the opportunity to make a $33 million profit on stock holdings after his employer snubbed a takeover bid by Belgian brewing consortium InBev.
A-B chief executive, August Busch IV, who reportedly spearheaded efforts to reject InBev’s $67.5 billion offer, stood to make more than $78 million on the deal, The Wall Street Journal reported.
His chief financial officer, Randy Baker, would have received $60.5 million, while Douglas Muhleman, the company’s most senior brewer, would have walked away with more than $33 million.
But the biggest losers were A-B chairman, Patrick Stokes, who would have picked up an extra $110 million, and Busch family patriarch, August Busch III, who would have earned a whooping $375 million on the sale.
Analysts are betting A-B’s rejection was not motivated by nationalistic qualms and the company is simply upping the ante in anticipation of a juicer bid.
But InBev has thus far stood its ground, claiming its offer represents a fair price despite a weakened stock market environment.
“Our firm proposal of $65 per share reflects the full and fair value of the company,” said InBev CEO, Carlos Brito. “The proposal is backed by fully committed financing, and provides immediate certainty of value in a weakened stock market environment.
“Our proposal is predicated on an established track record of international expansion and consistent growth in profitability,” he continued. "This combination would create a stronger, more competitive global company with an unrivaled worldwide brand portfolio and distribution network, as well as unmatched economies of scale in a period of rapidly escalating commodity prices. It would provide unparalleled opportunities for consumers, employees, wholesalers, business partners and communities.”