Did You Ever Wonder Why Your Senator and Congressman Ignore Your Concerns?
It's Because They Don't Work For You Anymore. They Work For International Money Concerns!
Oligarchy (Greek Ὀλιγαρχία, Oligarkhía) is a form of government where political power effectively rests with a small elite segment of society (whether distinguished by wealth, family, military powers or spiritual hegemony). The word oligarchy is translated into "rule by few." Compare with autocracy (rule by one person) and democracy (rule by the people).
We Are More And More Living In A Capitalist Oligarchy
Anheuser Busch approves $50bn sale to InBev - So Much For The King of Beers! The Last Major U.S. Based Beer Company Sold - Sold To Foreigners!
Budweiser brewer Anheuser-Busch agreed on Sunday night to be taken over by Belgian rival InBev for $70 a share, marking an amicable end to a month-long takeover battle that had recently grown hostile.
Shares of InBev opened 2.25 per cent higher on Monday at €45.50.
Anheuser’s board held a meeting on Sunday afternoon to approve the $50bn (£25bn) deal, which will create a global brewing giant with ownership of some of the world’s best-known brands. InBev produces Stella Artois, Bass and Hoegaarden.
The new company’s board is set to include two representatives from Anheuser, one of whom was expected to be current Anheuser’s chief August Busch IV, a member of the company’s founding family. The new company will be called Anheuser-Busch InBev.
A meeting in New York on Friday between Mr Busch and Carlos Brito, InBev’s chief, was “gracious and positive”, according to one insider.
In a statement, the companies said InBev’s chief executive officer Carlos Brito would become the CEO of the combined company. August Busch IV, the head of Anheuser-Busch, and one other current or former director from the US brewer will join the board.
A few issues, however, remained unclear.
Grupo Modelo, the Mexican brewer in which Anheuser owns a non-controlling half stake, has been agitating over the potential change of control, and the three parties have been working to reach a settlement.
Modelo, which brews Corona beer, has a right to first refusal if Anheuser tries to sell its ownership stake, but is widely believed not have the legal right to veto a broader takeover of Anheuser.
Modelo is arguing that it has a right under Mexican law to approve the deal, and is lobbying for favourable financial terms and operating independence.
The Mexico brewer on Monday announced that it had advised both Inbev and Anheuser-Busch that it is reserving its consent right.
“Our agreement with Anheuser-Busch was carefully constructed to ensure we have a definitive say in who our partner is. We are confident that our agreement, which is governed by Mexican law, gives us the right to decide whether or not to consent to the potential acquisition of Anheuser-Busch by InBev. We have a great deal of respect for InBev and look forward to continuing our discussions with them and hope to find a resolution that meets the needs of both companies and their stakeholders.”
InBev and Anheuser had also been negotiating on Sunday over the break-up fees they would attach to their deal. Both sides said they would push the other to agree to substantial break-up penalties. One insider said InBev was asking Anheuser to agree to a fee in the range of 2.5 per cent of the deal’s value.
InBev has committed to other promises it made when it first launched its formal offer. Aside from the deal’s price, which InBev agreed last week to boost from $65 per share, InBev’s willingness to maintain Anheuser’s heritage and general form proved key to Anheuser’s board as it weighed the offer.
Copyright The Financial Times Limited 2008