With Belgian-Brazilian InBev seeking to take over Anheuser-Busch (NYSE: BUD), it's hard to see why it would have political ramifications: if BUD's shareholders and board determine that it's in their best interests to sell, isn't that a corporate decision? And don't politicians have better things to opine on?Apparently not. Democratic Senator and presidential candidate Barack Obama told Reuters that "I do think it would be a shame if Bud is foreign-owned. I think we should be able to find an American company that is interested in purchasing Anheuser Busch if in fact Anheuser Busch feels that it's necessary to sell."
I'm an Obama supporter, but I'm not sure what the point is in wading into this one. Public companies have a responsibility to shareholders to be agnostic when it comes to foreign takeovers -- if that produces value, that's what they should do. When Barack Obama uses the pronoun 'we' to describe the strategic direction of a public company, I start to get a little worried.
If indeed Bud can find an American company interested in acquiring it at a competitive price, that's what the company will do. This is an economic decision about how the company can best produce shareholder value, and politicians shouldn't be wasting time on it.











Reader Comments (Page 1 of 1)
7-08-2008 @ 4:20PM
Joseph Reichert said...
Since you admit that you don't understand this, let me help. First, find a recording of John F Kennedy's inagural speech. Then try to remember it.
"Ask not what your country can do for you. Ask what you can do for your country"
Far too often we are willing to sell out the USA and our core industries for a quick buck. Maybe we are finally learning that we are only here for a little while and should not do more damage than we can repair in our lifetime.
Support USA Products and then watch the stock market !!!!
7-08-2008 @ 4:21PM
Jack F. Doyle said...
Could be because his elderly rival is married to Miss Budweiser.?
With a two year primary and electioneering period the candiate will be asked what kind of shorts he wears, his favorite color, flower and ice cream.He will dutifully play the game cause he is gonna win and win bigtime.
He has already admitted in a book he wrote about dobeeing some drugs so what else is there?
7-08-2008 @ 6:17PM
Dan said...
Why does a sentiment of thinking (not legislating) that an American company remain an American establishment suddenly mean he is campaigning for the dissolution of capitalism?
Are you suggesting, Zac, that we should sell ourselves out because present economy dictates that is a good decision. Even though, in all probability, it means that we will be in a position to buy ourselves back later at twice the price?
How does that make sense? Maybe you are worried (along with BUD's shareholders) that beer sales will plummet along with sales of the Ford F-150?
Beer happens to be the only domestic product I buy regularly. It feels good to think that I am supporting the domestic economy (even though most of everything else we make is absolute crap). I'm sure Mr. Obama was only remarking on the sad state of America's weak dollar and general "for sale" status and a wish to see an American company do well AND get to stay an American company.
7-08-2008 @ 6:21PM
Chris said...
Zac,
He's simply trying to get elected so he is voicing a populist message (American ownership) that appeals to many a person (just look at your comments). I doubt he really cares who buys or owns Bud.
7-10-2008 @ 9:16AM
Jobu37 said...
Anheuser-Busch is run by an elitest family that caters to the white-trash element that exists in our nation. Look around you and you will see who drinks Bud, Busch, or Natural Light. These products are desired by ex-cons and future cons almost exclusively. The one exception is Bud Light which is desired by those who really don't like the taste of beer but do like to get drunk. One would be hard pressed to find a difference between bottled water and Bud Light. However, through effective marketing AB has been able to put Bud Light on top of the sales charts. What does this have to do with the takeover attempt by InBev? Nothing really, it always struck me as odd that the stuck up Busch family became rich by providing second rate products to the lowest level of society in America. I hope InBev does take control but preferably at a price even lower than their initial offer.
7-10-2008 @ 10:13AM
skeptical said...
I am liking Obama more everyday. I hope he gets in the middle and stops the crazy Belgiums from ruining a great company. You can't trust them. Just look at the Ambev deal and you will see that they are ruthless cost cutters only concerned witht he bottomline and not growing the business. Also, look at Stella A...not doing so hot is it. How about ole Adolphus looking for his 15 minutes of fame....Andy has always been the smarter of the 2 ..Adolphus is about Adolphus...Andy has integrity...I wonder how Billy feels about all this stuff. Anheuser Busch is doing better and I believe their plan to reduce costs along with increasing revenue will work. At least you can trust them. The Busch family might be somewhat arogant, but they care about the company, it's employees and the city of St. Louis. That is more than you can say about Brito. The Cuba deal was the icing on the cake for me...I am a shareholder...A pretty substantial one in my book and I can assure all that A/B will get my vote if it boils down to that. I know a lot of others that feel the same way.
7-13-2008 @ 1:29PM
sj10689 said...
Whether or not Obama is campaigning against the hostile takeover for popularity, it's important to remember 2 things:
1) There are NO absolute or defined truths in politics except for money and power. herefore, we can't concern ourselves with, nor assume, that a politician is lying or not (unless history suggests otherwise a.k.a. loss of credibility)
2) Obama's message might reach out to those who need to realize that they are not alone, and that there is a powerful voice who is, at the very least, aware of the occurences and that will spread the message far - it could culminate in a mass movement (silent or active) against this hostile takeover, unprofound for now, but will have a rolling effect in the future
Seriously, think about it.