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CNBC.com |
] and European brewing giant InBev. As CNBC's David Faber reported, the battle over the future of Anheuser is expected to be contentious, on the heels of InBev's $46.3billion all-cash bid.
August Busch IV, CEO of Anheuser, is thought to be adamently opposed to letting go of the company's autonomy, going so far as exploring a possible union with Mexico's Grupo Modelo, the makers of Corona Extra. Anheuser already owns a 50% non-controlling stake in Grupo Modelo, but it's assumed that a union-in-full between the companies would make the total price tag too big for InBev. The European brewer has warned as much publicly.
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Then again, there are myriad issues with Modelo and Anheuser tightening ties, notably that it assumes Grupo Modelo is willing to cede control: the very issue that Anheuser hopes to avoid.
But, where does Mr. Buffett fit into all this? Well, Berkshire Hathaway is the second largest shareholder of the brewer, owning a 5% stake.
London's Guardian, citing sources, reports that Buffett will weigh into the strategic options for the company, at the request of August Busch. On the Sunday, the paper reporting the following:
"It is understood that Buffett is concerned about Busch's suggestion in a recent statement that it could be 'several months' before the company reaches a decision about the Inbev bid, 'due to necessary corporate governance, legal and regulatory steps that must be followed'… Buffett's anticipated involvement follows concerns that a straight rejection of InBev's offer - made at $65 a share last Wednesday - might spark investor lawsuits against Anheuser's executive board for breach of fiduciary duty."
Current Berkshire price: [US;BRK.A
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