Anheuser-Busch sold to In-Bev for 52 billion dollars(Updated with spiral effects)

[jw]

Its a sad day as we lose another American company that was and is a symbolic Icon of what American heritage and loyalty stood for......

story from WSJ

Letter from August Busch (or email)

A MESSAGE FROM AUGUST A. BUSCH IV

__________________________________________________ _________________



July 13, 2008

To:

Our business is made up of people who are very proud of what we’ve built together over 150 years, and the name “Anheuser‑Busch” stands for something important to all of us. Now, we have a groundbreaking agreement that honors that hard work and tradition as it takes us in new directions.

Anheuser-Busch has agreed to combine with InBev to become a new, strong and global company – Anheuser-Busch InBev. The directors thoroughly examined all possible alternatives and ultimately accepted this agreement, which provides additional and certain $70 per share immediate cash to investors. The agreement also combines two companies with a good strategic and geographic fit to form a business able to provide employees, wholesalers and other stakeholders with excellent opportunities for future growth. We have just issued a press release moments ago announcing this, see copy below.

I have a great sense of energy and excitement for the bright prospects of this new company. This will be a truly global brewer with a substantial business base in countries around the world. The global branding this new business can provide for Budweiser will strengthen the business and the brand in all locations.

Our business is based on great brands and great people, and that will not change with this new company. It will be up to us to maintain the loyalty of the consumers, retailers, wholesalers and suppliers we have worked to please over the years. We have attained great momentum with our brands. I know you are a team of professionals who will never let up against competition and will continue to deliver strong sales for the new company, just as you had for Anheuser-Busch.

The new business is best equipped to compete in a global industry. In considering this agreement, the board determined that $70 per share offered our shareholders full and fair value. But I’m pleased we also found a combination that could best protect the Anheuser-Busch business and the many people it touches – our employees, our wholesalers, our communities. To ensure a seamless transition and to reflect our ongoing partnership, InBev has agreed that, the Board of Directors of the combined company will be comprised of the existing directors of the InBev Board, myself, and one other current or former director from the Anheuser-Busch Board.

Let me emphasize that this is a friendly business agreement. I have come to know Carlos Brito over the past several years through our business agreement in the United States and in our previous exploration of joint business opportunities. He is a strong leader with high aspirations for how far we can take our business together. I respect him and he has my firm backing on these plans and in the operation of the future company.

Anheuser-Busch helped build a healthy three-tier wholesaler system in the United States by appointing independent business people, ushering in perpetual ownership, exclusive territories and quality standards that successfully drove long-term growth and value for all parties. The new Anheuser-Busch InBev shares those same core beliefs that wholesaler profitability and growth are critical to the new company’s success.


I know you will have many questions, and the team will be working to answer them for you as soon as possible. I am convinced that InBev will live up to the public commitments they have made about the future operation of the new company.

This has been an emotional decision for me. But I believe in this new company and see a better future to carry forward the traditions of Anheuser-Busch.

August A. Busch IV

That leaves Sam Adams, Yeungling, and many young upstart Micro-Brews as the only true American beers left......