Mergers and Acquisitions Basics

Chapter 8. The Role of Takeover Tactics and Defenses in the Negotiation Process

Ownership of the beer giant Anheuser-Busch (AB), an American icon, changed hands on July 14, 2008, when the company agreed to be acquired by Belgian brewer InBev for $52 billion in an all-cash deal. The announcement marked a reversal from AB's publicly stated position only a week earlier that InBev's offer undervalued the firm. Subsequently, AB sued InBev for “misleading statements” it had allegedly made about the strength of its financing. To court public support, AB publicized its history as a major benefactor in its hometown area of St. Louis, Missouri. The firm argued that its own long-term business plan would create more shareholder value than the proposed deal. ...