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  1. #1
    Join Date
    Jan 2007
    Location
    South Carolina
    Posts
    5

    Default In Bev-AB-Monster

    I wonder how Monster feels about this deal ? Also what about A-B's new nonalcoholic division that is in the works ?

  2. #2
    Join Date
    Jul 2004
    Location
    Jupiter, Florida, United States
    Posts
    1,575

    Default

    Usually the buy out clause would be for AB if someone bought Hansens/Monster, but this is different.
    Considering what InBev paid for AB I think they would want to keep a high margin brand in the portfolio. Beer sales are flat and Inbev is known to be a HUGE cost cutter once they buy someone. It only makes since that the high margin products stay on the truck.
    Last edited by greg; 07-15-2008 at 03:13 PM.
    Whether you think can or think you can\'t, you\'re probably right!

  3. #3
    Join Date
    Jul 2004
    Location
    Jupiter, Florida, United States
    Posts
    1,575

    Default

    As a follow up to my previous post about the Buy out clause: There is a clause in the deal that says if either party can not get this deal done on thier part that they will owe the other party $1.25Billion.!!!

    "Anheuser-Busch Cos. Inc. said Wednesday that its $52 billion deal to be taken over by InBev carries a breakup fee of $1.25 billion, according to a filing with the Securities and Exchange Commission.

    Either side would have to pay the fee if it was responsible for the deal falling through. "

    The article did say that employee retention bonuses where also a big part of the deal. Looks like Augustus negotiated some good will into the contract.
    Whether you think can or think you can\'t, you\'re probably right!

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