BloggingStocks

Kekst & Co: PR firm for private equity sells out

Tom Taulli — 2008-07-02T16:10:00+00:00

Filed under: Private equity, Anheuser-Busch Cos (BUD)

In the rarefied world of private equity, there is a well-known PR operator: Kekst & Co Inc. Founded in 1970, the firm has a sterling client list, which includes biggies like KKR. No doubt, it's a complex specialty, which requires a strong understanding of securities regulation and shareholder relations.

Well, Kekst is selling out to Publicis Group, which is a global advertising and marketing firm. The price tag was not disclosed.

Kekst has a storied past. For example, the firm was involved in the leveraged buyout of RJR (back in the late 1980s). Kekst is also advising Anheuser-Busch Companies Inc. (NYSE: BUD) on its fight against InBev.

With the slowdown in M&A and buyouts, might this be a bad time to sell? Perhaps so. But, then again, I'm sure that Kekst's founder, Gershon Kekst, wants some liquidity.

Besides, Publicis can provide a global platform. After all, there are likely to be many more cross-border M&A deals.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

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Smart bond plays, retiring on a shoestring & top kitchen values - Today in Money 7/1

Allan Halprin — 2008-07-01T08:59:00+00:00

Filed under: Microsoft (MSFT), eBay (EBAY), Starbucks (SBUX), Ford Motor (F), General Motors (GM), XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Money and Finance Today, Anheuser-Busch Cos (BUD), Countrywide Financial (CFC), United Parcel'B' (UPS)

In the News:

· Stocks Look Weak at Start of First Day of 3Q

· EBay Ordered to Pay Louis Vuitton, Fendi & Others Millions for Knockoff Sales

· InBev to Continue Pursuit of Anheuser-Busch

· Florida Sues Countrywide Over Mortgages

· General Motors Stock Hits 54-Year Low

· Wilbur Ross Says Run-Up in Oil Prices Is a Bubble

· UPS Pilot Rescues Debilitated Farmers

· Microsoft's Plan B for Search

· Starbucks Makeover Isn't Going Well

· Could a Ford, Chrysler Merger Be in the Making?

· Cable, Satellite Customer Satisfaction Falls, Poll Finds

· Howard Stern May Have a Sirius Dilemma As Company Looks to Cut Costs

Bonds: Smarter Plays for Darker Days
Thinking of Treasuries or other fixed-income plays as the stock market sinks? Here's what to look for.
Bonds: Smarter Plays for Darker Days - BusinessWeek

Who's Minting the Most Millionaires? Not the U.S.A.
A new survey finds when it comes to minting the wealthy, India and China now outpace the U.S. which isn't even in the top 10 anymore. Other countries also outpacing America include Brazil, Korea, Indonesia, Slovakia, Singapore, UAE, Czech Republic and Russia.
A Millionaire Boom In The East - Forbes.com

How to Retire on a Shoestring
You often have to be a little frugal to make a retirement budget work. The $27,798 median income for American households headed by someone 65 or older doesn't offer much breathing room when gas, groceries, and out-of-pocket healthcare costs all are conspiring to make retirement more difficult. Here are eight ways to stretch your retirement dollars.
8 Ways to Stretch Your Retirement Dollars - US News and World Report
In the News: Retirees Downsizing Their Dreams

Top Kitchen Values
You can create a great kitchen by following advice from Consumer Reports' experts and from 8,000 readers who told us about their remodeling projects. Plus, seven mini makeovers for less than $5,000.
ConsumerReports.org - Kitchen values: secrets of a successful remodel

Best Light Ice Creams
Fat might be bad for you, but it sure tastes good. Consumer Reports sampled 10 light ice creams, and even among these more healthful options, the two with the most fat and calories were the winners in our best light ice creams ratings.
ConsumerReports.org - Best light ice creams

Top Airport Bars
The good news in travel? It's easier than ever to drown your sorrows at the airport with a nice glass of wine, an artisan beer, or a good cocktail. Here are a host of upscale new drinking establishments which means business travelers no longer have to languish at dreary, dingy airport bars.
Booze at Airports - Business Travel Column - Joe Brancatelli - Seat 2B - Portfolio.com

Strategic Flying Maneuvers
Major airlines are reinstating minimum-stay requirements. Here's how to get around them.
Getting Around Airlines' New Minimum-Stay Requirements - SmartMoney

Secrets of a Millionaire Matchmaker, For Free!
Men hate short hair," says Patti Stanger, CEO and owner of The Millionaire's Club, and star of the hit Bravo series The Millionaire Matchmaker. Oh yeah, apparently women are not too fond of small-time earners, either. What do you mean you don't have $50,000 to get your dating life going? Well, at least MainStreet has some secrets from the Millionaire Matchmaker free of charge.
The Secrets of The Millionaire Matchmaker, For Free! | MainStreet

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Newspaper wrap-up: Anheuser-Busch to cut jobs and raise prices

Laurie Pasternack — 2008-06-30T08:00:00+00:00

Filed under: Newspapers, Magazines, Citigroup Inc. (C), Anheuser-Busch Cos (BUD), Barclays plc ADS (BCS)

MAJOR PAPERS:

After being downgraded by Moody's, The Wall Street Journal reported that MBIA Inc (NYSE: MBI) will have to make $2.9 billion in termination payments and put up an additional $4.5 billion in collateral on agreements called Guaranteed Investment Contracts. As a result the firm is selling municipal bonds to raise cash.
Anheuser-Busch Companies Inc (NYSE: BUD) introduced a new business plan to help thwart a takeover by rival InBev. As part of its plan, The Wall Street Journal reported its intention to reduce headcount, raise prices and buy back more of its shares.
In an attempt to withstand the economic slowdown, the Financial Times reported that Siemens AG (NYSE: SI) announced plans to cut 17,200 jobs worldwide. Approximately 6,400 job cuts will be in Germany with a third more, elsewhere in Europe.
The Financial Times also reported that Citigroup Incorporated (NYSE: C) is planning to change its bonus system for hundreds of its top managers, in an attempt to increase cooperation and reduce competition within the company.

OTHER PAPERS:

John Varley, the CEO of Barclays Plc (NYSE: BCS), said the GBP4.5B rights issue answered naysayers, and said in an interview with The Sunday Telegraph that extra financing will not be necessary.

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Anheuser-Busch finally plans to improve

Douglas McIntyre — 2008-06-28T11:10:00+00:00

Filed under: Deals, Management, Anheuser-Busch Cos (BUD)

Funny how companies get religion when there is a takeover threat. It says a great deal about how poorly many big firms are run and how lax their boards are when it comes to supervision.

Anheuser-Busch (NYSE: BUD) now plans to cut 1,000 people and raise prices. It is trying to hold off a bid from InBev. Now that its independence is at stake, it is taking decisive actions. It may not work because the plan probably comes too late. According to The Wall Street Journal (subscription required), "The St. Louis brewer's strategy, laid out in a conference call with investors, included $500 million in new cost savings, and higher earnings targets."

Yes, and what took them so long? Shares of BUD have hung around the $50 range for a number of quarters. Operating profit growth at the brewer has been modest. The InBev offer has driven the shares as high as $62.77. It is not a bad bet that they will go back to $55 if InBev is not successful.

BUD wants investors to think it can simply raise prices in a tough economy and bring in more revenue. That probably won't work. It if would, the company should have done it a long time ago.

Douglas A. McIntyre is an editor at 247wallst.com.

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Cramer on BloggingStocks: The path ahead is down

Jim Cramer — 2008-06-27T09:19:00+00:00

Filed under: Ford Motor (F), General Motors (GM), Market matters, Citigroup Inc. (C), Anheuser-Busch Cos (BUD), Bank of America (BAC), Merrill Lynch (MER), Countrywide Financial (CFC), Wrigley, (Wm) Jr (WWY), Wachovia Corp (WB), Washington Mutual (WM), Cramer on BloggingStocks

From TheStreet.com Network

TheStreet.com's Jim Cramer says with few exceptions, the landscape is littered with corpses.

Sell everything. Nothing's working. Revisit when the prices are adjusted for a big recession, soaring inflation and a crushed consumer. Sell at 12,000 and come back at 10,000. Even better: short it.

Are you going to argue with any of that? Do you have a case against it? What's the counter? Takeovers? We've had a couple: Anheuser-Busch (NYSE: BUD) (Cramer's Take), Wrigley (NYSE: WWY) (Cramer's Take). Good if you owned them.

Lower rates? Can the Fed help? We assume the Fed is done. The odds favor higher rates. Bank turnarounds? How, with short-rates going up? With housing prices going down?

Can oil go down? Only with a worldwide crash, and with a worldwide crash, why would we come back at 10,000?

Can the consumer get more liquid? How? Unemployment's going higher. Wages won't go up in that environment.

That's the environment. It's pretty bulletproof when it comes to its logic.

In fact, there's really only one thing that could be wrong with it. EVERYONE AND HIS BROTHER BELIEVES IN IT. It is the most consensus of consensus views.

Sometimes the consensus is dead right: Housing's been going down and everyone knows it's going down, and it keeps going down.

I have said the same thing about Citigroup (NYSE: C) (Cramer's Take) and Wachovia (NYSE: WB) (Cramer's Take) and Washington Mutual (NYSE: WM) (Cramer's Take) and Bank of America (NYSE: BAC) (Cramer's Take) -- cut the dividend already! -- and GM (NYSE: GM) (Cramer's Take) -- cut the dividend again already! -- and Ford (NYSE: F) (Cramer's Take). That's been right. That's worked.

So you can't just say the consensus is wrong.

The negativity coming into today's session is as thick as I can recall nearing most short-term bottoms. The issue is there is not enough fear out there. Despite the consensus, which obviously creates a need for lower prices before it is worth buying, there isn't a big spike in the VIX, there isn't a gap down, or a crescendo of selling. There isn't even any volume. So while the bearishness is real thick, the selling isn't. (Bloomberg had an excellent piece on this yesterday, noting how much lower the VIX was than at other bottoms.)

I think we lack a climax because we haven't had a climax, some session where people can say, "I don't care how much lower GM goes, I know it is a buy." Same with Citigroup.

That's because unlike most other times in the stock market, the stocks of big companies that are cascading all need capital, and the companies themselves aren't selling anything off except common.

Merrill Lynch (NYSE: MER) (Cramer's Take) should have sold Bloomberg. It is not a core asset. It should have sold its BlackRock (NYSE: BLK) (Cramer's Take) stake. It can make it without it. But no ... nothing.

Citigroup has a lot of core assets, but I now believe that the management of that place is so screwed up it's not redeemable anymore. They just need a 20% Saudi investor. Bank of America will now have to start the process of being the nation's largest mortgage lender in a nation that doesn't have much buying to do. Maybe that will change next year, but by then I suspect the federal government or these state governments will have wiped out Countrywide (NYSE: CFC) (Cramer's Take), which surely would been out of business if BAC had stepped away. The mistakes here have been catastrophic. So what if Wachovia or Washington Mutual have great deposit bases? We know in the end that the FDIC will have to act to protect them and then we will find out what Sheila Bair is made of. I figure she's like everyone else that has surfaced in finance with the feds (except Bob Steel) -- an empty suit.

In the meantime, I cannot disagree with the statement at the top of this piece, except for where it comes to commodity companies that sell into China -- they are the bull market. Anyone who thinks they have to go down too is not in keeping with the way the market works: there's always something that works, it is just the volume of it may be so small that it doesn't matter. That's where we are right now.

All my indicators say that it is extremely dangerous to short here: oscillators, attitudes, polls. They haven't worked either -- or yet. I think the palpable gloom simply does one thing -- it'll be a stair-step down rather than a cascade, where you can make a little money when you are on the stair but then give it back on the next step, until we get to some level that better reflects a GM bankruptcy or a Citigroup collapse, one or the other, or both.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer had no positions in the stocks mentioned.

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Newspaper wrap-up: InBev says its bid for Anheuser Busch will turn hostile

Laurie Pasternack — 2008-06-27T08:13:00+00:00

Filed under: Newspapers, Magazines, Pfizer (PFE), Anheuser-Busch Cos (BUD), Merrill Lynch (MER), Procter and Gamble (PG)

MAJOR PAPERS:

The Wall Street Journal reported that is is not yet certain whether Merrill Lynch & Co Inc (NYSE: MER) will need to raise money. If it does, selling common stock could be expensive due to a 12-month protection the bank offered the investors that bought $12B in common and preferred shares earlier this year and selling assets like its interest in Bloomberg may present a different problem.
The Wall Street Journal also reported that investigators from the European Union are probing deeper into the pharmaceutical industry in an effort to determine whether drug companies have used unfair tactics to increase prices and block competition. Investigators have reportedly ask for views on direct-to-pharmacy distribution channels, which Pfizer Inc (NYSE: PFE) and AstraZeneca Plc (NYSE: AZN) recently established in Britain.
After Anheuser-Busch Companies Inc (NYSE: BUD) said it would reject InBev's $46B bid as "financially inadequate," InBev said it would launch a hostile bid. According to court documents, the Financial Times reported that InBev is preparing to launch a proxy battle seeking the removal of Anheuser's entire board.
The Financial Times also reported that soaring energy prices are forcing U.S. consumer goods company The Procter & Gamble Company (NYSE: PG) to rethink how it distributes products. The company may consider shifting manufacturing sites closer to consumers in order to lower its transport bill.

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Before the bell: Futures drift lower as oil sets another record high

Melly Alazraki — 2008-06-27T07:43:00+00:00

Filed under: Before the bell, Earnings reports, Deals, General Motors (GM), Market matters, Citigroup Inc. (C), Anheuser-Busch Cos (BUD), Bank of America (BAC), Research in Motion (RIMM), Goldman Sachs Group (GS), Amer Intl Group (AIG), Oracle Corp (ORCL), Palm Inc (PALM), Economic data, Oil

U.S. futures were mixed to lower early Friday morning, a day after stock markets sold off, ending at their lowest level in nearly two years. Still, with oil prices reaching another record in Asia, it's questionable whether stocks could indeed stage a recovery.

On Thursday, U.S. stocks sank to lows not seen in nearly two years after Goldman Sachs (NYSE: GS) downgraded investment banks including Citigroup (NYSE: C) and General Motors Corp. (NYSE: GM) to Sell and as Wall Street was also worried about the outlook for tech stocks as both RIM (NASDAQ: RIMM) and Oracle (NASDAQ: ORCL) reported quarterly results Wednesday, giving a tepid outlook. Topping it all were oil prices reaching $140 a barrel. The Dow Jones Industrial Average fell 358 points, or 3.03%, the S&P 500 lost 38 points, or 2.94%, and the Nasdaq Composite dropped 79 points, or 3.33%.

Usually, a day after such a selloff, buyers tend to come in, this morning we also woke up to news that oil prices climbed to a record above $141 a barrel in Asian trading, which may dampen the mood on Wall Street again. Light, sweet crude for August delivery rose as high as $141.71 a barrel before pulling back to $141.10. The previous trading record for a front-month contract was $139.89, set on June 16.

Economic releases today include May personal income and spending at 8:30 a.m. EDT. With it, the core PCE inflation indicator, the Federal Reserve's preferred inflation gauge is also due out.

In corporate news, the board of Anheuser-Busch Cos. (NYSE: BUD) has unanimously rejected InBev NV's $46.35 billion takeover bid, calling it "financially inadequate."

In financials, American International Group Inc. (NYSE: AIG) plans to absorb as much as $5 billion of any losses on sales of the investments, up from a previous commitment of $500 million. Meanwhile, Bank of America (NYSE: BAC) said Thursday it will cut about 7,500 jobs after it closes its acquisition of Countrywide Financial Corp. (NYSE: CFC).

And finally, Palm (NASDAQ: PALM) shares are dropping yet another 4.4% in premarket trading after the smartphone maker posted a fourth-quarter loss after a profit a year earlierdespite strong sales of its new, cheaper Centro phone.

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Anheuser-Busch vs. InBev -- ready for a bar brawl?

Melly Alazraki — 2008-06-26T18:30:00+00:00

Filed under: Deals, Yahoo! (YHOO), Berkshire Hathaway (BRK.A), Anheuser-Busch Cos (BUD)

The board of Anheuser-Busch Cos. (NYSE: BUD) has unanimously rejected InBev NV's $46.35 billion takeover bid, calling it "financially inadequate." So now, will we have a hostile takeover fight?

So far, we had InBev putting in the offer and Anheuser-Busch taking its sweet time to reply while trying to thwart the offer by talking to Groupo Modelo. If Anheuser can manage to buy the remaining 50% of Modelo, it would be too big for InBev to swallow. Thursday, though, Anheuser finally replied. Unanimously, no less. I wonder if somewhere around that boardroom full of directors, one at least represented the interests of BUD's second largest shareholder, Warren Buffett's Berkwhire Hathway (NYSE: BRK.A).

In response, InBev said it might ask Anheuser shareholders to unseat the whole board. InBev filed suit "seeking a judgment to confirm that shareholders acting by written consent could remove all of Anheuser's directors without cause." I'd say they might even have cause. The $65 per share offer represented a 35% premium at the time. What's so "financially inadequate" about that?

Well, as Anheuser Chairman Patrick Stokes said, the offer undervalues the Bud Light and Budweiser brands, which he calls iconic. Whatever he calls them, they are the top two selling beer brands in the world. He also said InBev undervalues BUD's growth prospects. Well, if Anheuser could restructure on its own, it should have done so by now and not wait until it was up against the wall with its shareholders. The plans it has and wants to put in place will take a while to bear fruits no doubt.

As InBev has stated, it'd rather take over BUD under friendly terms (a bit of an oxymoron there, but that's the business world). Otherwise, it could either take the tender offer directly to shareholders or get into a fight similar to that Icahn has on his hands with Yahoo! Inc. (NASDAQ: YHOO)'s board, which may not be pretty. Replacing a whole board for a new slate can, and will, get ugly. Or it can do both.

If InBev decides to play nice after all, it may have to raise its bid. Maybe they should all chill and drink a Molson (NYSE: TAP). Things will look better after a few...

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Option Update: Anheuser-Busch volatility up

Paul Foster — 2008-06-26T09:20:00+00:00

Filed under: Anheuser-Busch Cos (BUD), Options

Anheuser-Busch (NYSE: BUD) closed at $61.76.

The Financial Times reported InBev has financing to purchase all of the outstanding shares of BUD for $65 per share in cash.

BUD July option implied volatility is at 40, August is at 34; above its 26-week average of 28 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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Anheuser-Busch (BUD) to shareholders: This deal is not for you

Tom Taulli — 2008-06-26T08:40:00+00:00

Filed under: Deals, Management, Anheuser-Busch Cos (BUD)

It's been about two weeks since InBev NV made its blockbuster $46.3 billion bid for rival Anheuser-Busch Cos Inc (NYSE: BUD). Yes, the silence has been deafening. And, of course, the rumors have been rampant.

In fact, InBev has been getting antsy. For example, this week the company reaffirmed its bid (it's the third letter from InBev's CEO, Carlos Brito).

There is also a lending group ready to pull the trigger. The banks include: Banco Santander, Bank of Tokyo-Mitsubishi, Barclays Capital, BNP Paribas, Deutsche Bank, Fortis, ING Bank, JP Morgan (NYSE: JPM), Mizuho Corporate Bank and Royal Bank of Scotland.

But, according to the Wall Street Journal [a paid publication], it looks like the company's board is close to making an announcement. Although, it appears that the company will reject the deal. Essentially, Anheuser-Busch thinks the deal is too cheap.

That may be the case. But there's a problem: who can pay a higher price for the company?

Interestingly enough, it appears that Anheuser-Busch will make some restructuring moves (such as selling non-core assets). But why didn't it do this several years ago?

The fact remains that the company doesn't have a viable alternative - that is, unless InBev wants to bid against itself. But why?

Instead, it's a good bet that InBev will go directly to shareholders and pull off a hostile bid. In such a move, it will certainly put lots of pressure on Anheuser-Busch - which has few defenses - and perhaps get a deal done fairly quickly.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

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Before the bell: GM, CAG, NKE, BUD, RHT, YHOO, AAPL ...

Melly Alazraki — 2008-06-26T08:20:00+00:00

Filed under: Before the bell, Major movement, Earnings reports, Analyst reports, Analyst upgrades and downgrades, Deals, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Apple Inc (AAPL), General Motors (GM), Anheuser-Busch Cos (BUD), ConAgra Foods (CAG), NIKE, Inc'B' (NKE), Red Hat Inc (RHT), Palm Inc (PALM)

Before the bell: Futures lower on financials, tech concerns

Reporting today:
Palm Inc. (NASDAQ: PALM) is expected to post a loss of 22 cents a share in the fourth quarter.
ConAgra Foods (NYSE: CAG) is expected to post earnings of 34 cents a share in the fourth-quarter .

Nike Inc. (NYSE: NKE) reported late Wednesday a rise in quarterly profit of 12% to $437.9 million, or 86 cents a share, helped by gains in Europe and Asia. Sales jumped 16% to $5.1 billion. The earnings beat Wall Street's forecast. Shares are down 4.8% in premarket trading.

Anheuser-Busch Cos. (NYSE: BUD) will likely officially reject InBev NV's $46.3 billion takeover bid this week and announce plans to lower $1 billion in costs, pay a special dividend and sell off divisions like its theme-park unit to increase its stock price. InBev may then raise its offer.

Yahoo Inc. (NASDAQ: YHOO) defended the deal it made with online search leader Google Inc. (NASDAQ: GOOG), saying it is a more desirable partner than Microsoft Corp. (NASDAQ: MSFT). Yang, Yahoo's CEO, wrote so in a letter Wednesday. The letter is part of Yahoo's campaign to protect its strategy and board against a revolt led by activist investor Carl Icahn.

Goldman Sachs downgraded General Motors Corp. (NYSE: GM) to Sell from Neutral and cut its price target to $11 from $19. Most troubling is that the broker said that liquidity concerns could increase. Goldman cut its rating of two other sector stocks as well. Shares are down 5.6% in premarket trading to $12.09.

Red Hat (NYSE: RHT) reported first-quarter results Wednesday after the close. Profit rose almost 7% and revenues grew 32%, inline with estimates. Shares are down 4% in premarket trading.

Telefonica SA said Wednesday it has received 300,000 pre registrations in the U.K. and Spain to buy Apple Inc.'s (NASDAQ: AAPL) new third- generation iPhone.

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Newspaper wrap-up: Anheuser-Busch prepares to battle InBev

Laurie Pasternack — 2008-06-26T08:00:00+00:00

Filed under: Newspapers, Magazines, General Electric (GE), Citigroup Inc. (C), JPMorgan Chase (JPM), Anheuser-Busch Cos (BUD), Bank of America (BAC), Lehman Br Holdings (LEH)

MAJOR PAPERS:

Anheuser-Busch Companies Inc (NYSE: BUD) is going to turn down InBev's unsolicited $46.35B takeover offer and that may come before week's end, the Wall Street Journal reported. InBev is then expected to pursue a hostile takeover and Anheuser will say the offer undervalues the company. Instead, Anheuser will attempt to boost its share price by selling non-core assets such as its theme parks.
The Wall Street Journal also reported that Belgian-Dutch financial firm Fortis NL (OTC: FORSY), in a move to increase its solvency, will attempt to raise $12.54B, and will also cancel its interim dividend and sell some assets.
According to people familiar with the situation, the Wall Street Journal reported that JP Morgan Chase & Co (NYSE: JPM) reportedly dropped out of the bidding for General Electric Company's (NYSE: GE) $30B credit-card business. The sources said Citigroup Incorporated (NYSE: C), Bank of America Corporation (NYSE: BAC) and Capital One Financial Corporation (NYSE: COF) are not expected to submit bids, as a result of charge-offs and rising delinquencies in their own credit card portfolios.
The Financial Times reported that the London Stock Exchange, in a joint venture with Lehman Brothers Holdings Inc (NYSE: LEH), unveiled a pan-European equities trading platform to fight rivals that are hurting its market share.

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Anheuser-Busch feels the heat from InBev

Jonathan Berr — 2008-06-25T11:50:00+00:00

Filed under: Deals, Products and services, Berkshire Hathaway (BRK.A), Anheuser-Busch Cos (BUD)

This Bud may not be for Anheuser-Busch Cos. (NYSE: BUD) for much longer.

InBev, the Belgian mega brewer, has told the King of Beers that it won't wait forever for it to make up its mind about whether to accept its unsolicited $46.3 billion offer. In the third and probably not the last letter to Anheuser-Busch CEO August Busch IV, InBev CEO Carlos Brito points out that his company's offer, which represents an 18% premium on its all-time high in 2002, is a generous one.

"The market reaction to our proposal has been extremely positive," Brito writes. "We believe this confirms our view that our proposal is the best way to achieve this transformational combination for all constituents."

InBev has already lined up financing for its $65 per share offer and has even paid about $50 million in commitment fees to its bankers. Budweiser's long-time headquarters in St. Louis will be maintained as will its senior management team. It does not get any better than this for a company about to be acquired.

The Busch family, though, reportedly is divided about the InBev offer. Andrew Busch, an uncle of the CEO, has urged the company to remain independent, while Adolfus Busch, another uncle, has urged Anheuser-Busch to take the offer. The company continues to study the proposal, which the Busch family lacks enough stock to block on its own.

There is no doubt that CEO August Busch, who has recently unloaded shares, is also seeking the advice of another "uncle," Warren Buffett. His Berkshire Hathaway Inc. (NYSE:BRK.A) has been one of Anheuser-Busch's biggest shareholders for years.

Like beer drinkers, stock holders would prefer to see things bubbly rather than flat. If the company does not take InBev's offer, Anheuser-Busch's stockholders will be emptier than a keg after a college fraternity party.

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Why you must learn short selling to survive this market

Timothy Sykes — 2008-06-23T09:15:00+00:00

Filed under: Google (GOOG), Apple Inc (AAPL), General Electric (GE), Exxon Mobil (XOM), JPMorgan Chase (JPM), Anheuser-Busch Cos (BUD), Broadcom Corp'A' (BRCM), Technical Analysis, Stocks to Sell

Don't know where the market is headed? Some people think a full blown crash is possible; some believe this is a good time to buy while others just don't know what to believe. Well, I just don't care and neither should you.

Because if you're like me, you've learned to take everything one high percentage profit trade at a time, whether you're betting on higher or lower prices. That's right, I'm talking about easy individual market inefficiencies like THIS.

As for the markets a whole, it's the same pathetic guessing game it'll always be, filled with plenty of "gurus" with polished-sounding theories where only a few truly brilliant hedge fund managers guess correctly with the rest of us just trying not to pull a Bill Miller (look foolish).

After all, none of the market leaders such as Google Inc (NASDAQ: GOOG), Apple Inc (NASDAQ: AAPL) nor even Exxon-Mobil Corp (NYSE: XOM) and General Electric Co. (NYSE: GE) have charts worthy of investing your hard earned capital. (And as a side note I must scream a big fat "I told you so!" to the people who bought GE in the low $30s as a dividend play)

Sure, stocks including Sprint Nextel Corp (NYSE: S), Skyworks Solutions Inc (NASDAQ: SWKS) and Broadcom Corp (NASDAQ: BRCM) might have bottomed (which I'm overly proud to have called in THIS article back in April), but blue chips like JP Morgan Chase & Co. (NYSE: JPM) and Pfizer Corp (NYSE: PFE) have charts that make investors want to drink heavily. (Maybe that's why Anheuser-Busch Cos. (NYSE: BUD) is getting takeover offers!)

That is, unless you're a short seller, which sadly far too few of you are as you somehow believe the profiting off others' failures to be un-American or not for you. Well, I've got a purely American message for you: it's only unpatriotic to refuse to learn a strategy and ignore wide open profit opportunities.

Companies will continue to fail, financial firms will continue to stink up the joint-everybody's paying for years of excess-and it doesn't look like it's going to be over anytime soon.

That's why I encourage you to learn about short selling, if you're willing to keep an open mind, visit my blog, and you'll see why I'm loving this bear market as my portfolio is now up 58% in the last few months.

Timothy Sykes writes the blog timothysykes.com, is a former hedge fund manager, star of the TV show Wall Street Warriors and author of the book, An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund

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Radio silence at Anheuser-Busch

Tom Taulli — 2008-06-21T15:40:00+00:00

Filed under: Berkshire Hathaway (BRK.A), Anheuser-Busch Cos (BUD)

On Friday, the board of Anheuser-Busch Cos. Inc. (NYSE: BUD) met and discussed the $46.3 billion unsolicited bid from rival InBev NV. However, there was nothing announced to its eager shareholders.

But, hey, why speed things up? Might as well keep InBev guessing, right?

And, there's much for the rumor mill to chomp on. For example, Carlos Fernandez said he has resigned from Anheuser's board. He is the CEO of Grupo Modelo, which is half-owned by Anheuser.

One possibility is that Anheuser will buy the rest of Grupo, making it tougher for InBev to pull off its buyout. So, does the resignation mean that Anheuser and Grupo are talking about such an arrangement?

It's really tough to tell. Perhaps Grupo is actually talking to InBev? After all, it looks like Grupo wants to remain independent.

Yet, all this stuff seems more of a sideshow. The fact remains that Anheuser can't ignore InBev and is under lots of pressure to sell out (especially in light of its sluggish operating performance over the past few years).

Actually, Adolphus A. Busch IV sent a letter to Anheuser's board urging negotiation with InBev to get a deal done. He's the uncle of the CEO, August A. Busch IV.

Finally, there is another interesting dynamic: Warren Buffett. His company, Berkshire Hathaway (NYSE: BRK.A), owns 5% of Anheuser's shares. No doubt, it should be interesting to get his views on the matter.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

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Why would InBev even want Anheuser-Busch's Bud?

Melly Alazraki — 2008-06-20T15:45:00+00:00

Filed under: Deals, Anheuser-Busch Cos (BUD)

It's no secret that InBev's $46.3 billion bid for Anheuser-Busch (NYSE: BUD) was aimed so that it could get its hands on the Budweiser and Bud Light brands, two of the top four selling beers in the world. Carlos Brito, Chief Executive of Belgium's InBev, said so quite clearly. Not only that, he also promised Bud would go on to be made in the same breweries, and that none in the U.S. would be shut down should the merger occurs. He also promised to keep most of management in place.

Well, for me the big question has always been why? What is this Belgian-Brazilian company fascination with beer brands that are so American -- in recognition and in taste. Well, it turns out that this is only partly true. While it is true that it is mostly Americans who drink light beers, Budweiser has actually captured sizable market share outside the U.S., like 13% in Ireland and 11.5% in Canada in 2006.

So now I understand why the maker of much superior Stella Artois would want to own the low-rated Budweiser. What's in it for Bud then? Lots. Apparently, and amazingly enough, it is in the U.S. of all places that shipments of Budweiser have dropped significantly.

But as companies that have a family or co-founder (read Yahoo's Yang) in charge do, Anheuser-Busch on a whim decided it did not want to sell to InBev. Instead, it turned to Group Modelo, the Corona maker and another company controlled by family. Anheuser-Busch already owns 50% of Modelo and a deal to buy the rest would thwart InBev's attempts as it would make BUD too big. That is too bad. At least for appearances sake, today Modelo's CEO resigned from Anheuser-Busch's board and some might even say it's a good sign as the board has more independent directors who could force the company to consider InBev's bid.

Meanwhile, Anheuser keeps on plowing and Friday said it would acquire the remaining 50% share of Crown Beers India to get distribution there.

I wonder what Buffett -- who (through Berkshire Hathaway (NYSE: BRK.A)) is the second biggest shareholder of Anheuser-Busch -- has to say about all that.

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Newspaper wrap-up: When a troubled home loan is not

Laurie Pasternack — 2008-06-19T08:00:00+00:00

Filed under: Newspapers, Magazines, Hewlett-Packard (HPQ), JPMorgan Chase (JPM), Anheuser-Busch Cos (BUD), Bear Stearns Cos (BSC)

MAJOR PAPERS:

Long Island, NY's Astoria Financial Corp (NYSE: AF) has found a novel way to reduce the number of its nonperforming loans by changing its internal policy on when mortgages are classified on its books as troubled, the Wall Street Journal reported. By counting home loans as non performing when the borrower misses at least three payments, not two, Astoria reduced its non-performers to $69M from $106M in three months.
The Wall Street Journal also reported that the indictments of Matthew Tannin and Ralph Cioffi, two former Bear Stearns hedge-fund managers, are expected to cite a personal e-mail suggesting the funds were "toast," four days before they told investors they had little to worry about. JP Morgan Chase & Co (NYSE: JPM) has said it will cover the legal costs of the fund managers.
Hewlett-Packard Company (NYSE: HPQ) is set to reorganize its printer unit. The Wall Street Journal said that the unit's five business units will be cut down to three to become more efficient at adapting to a marketplace in which consumers are relying less on printing.
According to people close to the situation, the Financial Times reported that Anheuser-Busch Companies Inc's (NYSE: BUD) board of directors is planning to meet this week to discuss the $46B bid from rival brewer InBev.

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Midyear investment guide, fat paychecks for oil CEOs & square milk at Wal-Mart - Today in Money 6/17

Allan Halprin — 2008-06-17T08:01:00+00:00

Filed under: Wal-Mart (WMT), Ford Motor (F), Exxon Mobil (XOM), Money and Finance Today, Anheuser-Busch Cos (BUD), Applied Materials (AMAT), Goldman Sachs Group (GS), BP p.l.c. ADS (BP), Valero Energy (VLO), Broadcom Corp'A' (BRCM)

In the News:

· Warren Buffett Said to Back InBev's Bid for Anheuser-Busch

· Fed Not Likely to Raise Interest Rates at Next Week's Meeting

· Goldman Sachs Close to $7 Billion SIV Deal

· Midwest Floods Could Impact the Cost of Your Coke & Burger

· L.A, Philly & Other Cities Helping Residents Facing Foreclosure

· Ford to Idle SUV Plant for 2 Months as Sales Slump

· 'Soul Train' to Get New Life as Don Cornelius Sells Classic Franchise

· Broadcom Co-Founder Pleads Not Guilty to Drugging Cohort, Highing Prostitues & More

· Feds Believe Missing Hedge Fund Swindler on the Run

Midyear Investment Guide
It wasn't smooth sailing for stocks in the first half of 2008. Is it time to jump back in? SmartMoney sets out to find the most promising midyear investments. They zeroed in on the sectors that were hit hardest over the past 12 months. The result: stocks whose better days should be ahead of them. They include Valero Energy, Applied Materials, International Paper to name a few.
SmartMoney's Midyear Investment Guide - SmartMoney.com

Oil CEOs: High Prices, Fat Paychecks
Energy chief executives got raises last year much bigger than in other industries. Was it pay for performance-or pay for high oil prices?
Oil CEOs: High Prices, Fat Paychecks - BusinessWeek

Wal-Mart Pushes Square Milk
Get ready to pour your milk out of a square jug. Wal-Mart sustainability chief says the giant retailer is pushing harder than ever to go green. And so - like concentrated laundry detergent, environmentally-friendly cleaning products and compact fluorescent light bulbs, all of which are being pushed by Wal-Mart - square milk jugs are likely to find their way into tens of millions of American homes.
Square milk and mulch from old tires - FORTUNE

Has the Electric Car's Time Finally Come?
Backed by U.S. venture capital, Norwegian startup Think is betting its Ox concept vehicle can prove that the electric car's time has finally come.
The Electric Car Lives - BusinessWeek

Real-Life Families Who Cut Out Their Credit Cards
At one time Suzi and Terry Tolliver charged everything: gas, dinners, wedding expenses. And they had a $70,000 credit-card bill to show for it.They could handle the minimum payments, but the debt was weighing them down. Now that they've stopped using credit cards and gotten out from under their debt they're becoming parents for the first time, adopting twin boys from Vietnam. The adoption is expensive, $25,000, but they're paying for it in cash. See how they and 9 other families decided it was time to break their bad plastic habits. Here's how they did it.
They cut out their credit cards - The Tollivers (1) - CNNMoney.com

Best-Paid Bench Warmers
Which pro athletes do the least for the most? Here's a rundown of whose playing time and contributions don't jibe with their salary status within their league.
The Best-Paid Bench Warmers - Forbes.com

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Buffett appears ready to back InBev buy-out of BUD

Douglas McIntyre — 2008-06-17T03:55:00+00:00

Filed under: Deals, Anheuser-Busch Cos (BUD)

Overnight, Belgian newspaper De Standaard wrote that, based on its sources, Warren Buffett backs an InBev buy-out of Anheuser-Busch (NYSE: BUD).

Is it any wonder? BUD can try to greatly improve its earnings on its own. With 50% of the US beer market, that may be hard. It can hope that buying the piece of Mexican brewer Grupo Modelo that it does not already own will help profits. More likely it will increase debt or dilute current shareholder.

BUD's problem is that its shares may never see $60 again. They have risen above that on the InBev offer. A look at the company's long-term shock chart shows it has never been this high before.

If Buffett makes his backing of the InBev offer public, most of the BUD investors are likely to follow. He will have done all of them a favor.

Douglas A. McIntyre is an editor at 247wallst.com.

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Kobe makes 'Final Four' with BUD, ETFC, GM & MCD - NBA still in business

Sheldon Liber — 2008-06-16T17:16:00+00:00

Filed under: Rants and raves, General Motors (GM), Thailand, McDonald's (MCD), Walt Disney (DIS), Anheuser-Busch Cos (BUD), Business of sports, E*TRADE (ETFC)

Yesterday could have been the end of the NBA season, but the Los Angeles Lakers forced a game six in Boston -- not so much by winning; more by having a "refuse to lose" finish that they could not muster before. I am quite sure David Stern is fine with that outcome. ESPN, and ABC television owned by Walt Disney (NYSE: DIS) must be ecstatic. The NBA officials will earn another paycheck, and the sponsors? They are praying for a game seven for sure!

Yesterday, prior to the game, I posted Sunday Funnies: Lakers/Celtics -- NBA business success, and dedicated much of the word flow to all the clamoring about NBA officiating and reasons why the game had issues. Today is all the about the cash.

While the Super Bowl is the hugest of events, an NBA Finals is a saga with twists and turns, and this one so far has had many. The Lakers face insurmountable odds of winning two games in Boston so they have been as much as counted out already.

Laker star and NBA Most Valuable Player Kobe Bryant has posed the most interesting perspective on the challenge his team faces that I can ever remember. He said, prior to the game, that since he did not go to college he viewed his situation like making the Elite Eight referring to Division I college basketball March Madness. He said, you just have to feel grateful you are there and know that you have to win three games to win the tournament.

If that is the case, having won yesterday, the Lakers -- having made the Final Four -- still have two games to win. That is a wonderful perspective and all that could be hoped for in the Lakers situation.

However, the Celtics have a different view. They will play game six like it was game seven, and since the Lakers have shined in spurts but not finished with any gusto, the odds are severely against them.

And now a word from our sponsors -- Anheuser-Bush (NYSE: BUD), E*Trade Financial (NASDAQ: ETFC), GMC a division of General Motors (NYSE: GM) and McDonald's (NYSE: MCD) -- all had commercials broadcast during the game, and will have at least one more. All the excitement, news and growing hype building up to each successive game has to be good for all of them.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I do not own shares in any of the stocks mentioned.

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