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Inbev shareholders approve Anheuser-Busch deal
12:03 PM EDT on Monday, September 29, 2008
LEUVEN, Belgium (AP) -- InBev SA shareholders on Monday backed the company's $52 billion takeover of Anheuser-Busch -- a deal that would form the world's largest brewer under the name Anheuser-Busch InBev.
Shareholders also approved a capital increase and share issue that would raise up to $10 billion to pay for part of the deal. That covers the existing equity bridge financing of $9.8 billion in place since the deal was announced in July, InBev said, with an extra margin to cover any major currency fluctuations until the deal closes.
Shareholders of St.Louis-based Anheuser-Busch still neeed to approve the deal.
The takeover would bring together the makers of Budweiser, Michelob, Bud Light, Stella Artois and Beck's and create the world's largest brewer, as well as the third-largest consumer products company.
More than three-quarters of InBev's shareholders voted in favor of the deal, the name change and the capital increase at a meeting at the company's Leuven, Belgium headquarters.
They also backed the appointment of Anheuser-Busch chief executive August Busch IV as a director in the new company and changing control of Anheuser-Busch's existing $45 billion senior credit facility and the equity bridge financing of $9.8 billion.
InBev had already said its controlling shareholder -- Stichting InBev, which owns a 52 percent stake -- backed these changes with the support of at least another 11 percent.
Anheuser-Busch owns several properties in the Williamsburg area. In addition to a brewery in Williamsburg, the company's subsidiaries own the Busch Gardens theme park, the Kingsmill Resort and Spa, and the Water Country USA water park.
Stichting InBev is controlled by three Brazilian financiers -- including the investment banker and billionaire Jorge Paulo Lemann -- and a group of Belgian families.
A date for a vote by Anheuser-Busch's shareholders has not yet been set. A spokeswoman reached Monday did not say when that would be. Last week the company set this Friday as its record date, meaning anyone who owns stock by that day will be able to vote on the sale.
InBev is currently the world's second-largest brewer, narrowly behind SABMiller. Swallowing Anheuser-Busch would see it capture half of the U.S. beer market and a fifth of the markets in China and Russia.
The Belgian-Brazilian brewer said its foothold in emerging markets such as China and Brazil would boost sales of Anheuser-Busch's brands.
The Anheuser-Busch board agreed on July 14 to be taken over by InBev, heading off what had promised to be a long and acrimonious takeover battle for the brewer.
InBev has tried to soothe American fears of job losses by promising to keep open all 12 North American breweries -- a commitment chief executive Carlos Brito repeated Monday, saying there would be no closures as long as the company did not face extra U.S. taxes.
Anheuser-Busch already plans to shed 1,185 positions -- mostly by offering early retirement and not filling existing vacancies.
InBev chief executive Carlos Brito also tried to soothe U.S. worries over possible job losses at Anheuser-Busch, saying he was sticking to his commitment not to close or make new cutbacks to its 12 "very efficient" breweries.
But he added some conditions to this promise: "provided there are no new or increased federal tax or state excise taxes or unforeseen extraordinary events that would negatively impact A-B's business."
The International Brotherhood of Teamsters, a trade union representing some 8,000 Anheuser-Busch truck drivers and other workers, warned that it would hold the company to its promises.
"Unexpected events can happen. The workers of Anheuser-Busch in the United States intend to keep the company to its word at keeping those plants open," said Timothy Beaty, the teamsters' director of global strategies.
InBev Chief Executive Carlos Brito said in a statement that the shareholders' vote of support showed they saw the strategic and financial benefits of combining with Anheuser-Busch.
"We are very pleased to complete this important milestone and we remain on track to close the transaction by the end of the year," he said in a statement. The deal still needs to be cleared by regulators and by Anheuser-Busch shareholders.
The company will also have to announce the detail of the share issue, now that it has secured shareholders' agreement for a capital increase to cover an existing equity bridge financing of $9.8 billion in place since the deal was announced in July. It also asked for an extra margin to cover any major currency fluctuations until the share issue is finalized.
More than three-quarters of InBev's shareholders voted in favor of the deal, the name change and the capital increase at a meeting at the company's Leuven, Belgium headquarters.
They also backed the appointment of Anheuser-Busch chief executive August Busch IV as a director in the new company and changing control of Anheuser-Busch's existing $45 billion senior credit facility and the equity bridge financing of $9.8 billion.
InBev had already said its controlling shareholder -- Stichting InBev, which owns a 52 percent stake -- backed these changes with the support of at least another 11 percent.
Stichting InBev is controlled by three Brazilian financiers -- including the investment banker and billionaire Jorge Paulo Lemann -- and a group of Belgian aristocratic families.
Anheuser-Busch owns several properties in Virginia in the Williamsburg area. In addition to a brewery in Williamsburg, the company's subsidiaries own the theme park, the Kingsmill Resort and Spa, and the Water Country USA water park.
The takeover would bring together the makers of Budweiser, Michelob, Bud Light, Stella Artois and Beck's and create the world's largest brewer, as well as the third-largest consumer product company.
InBev is currently the world's second-largest beer-maker, narrowly behind SABMiller. Swallowing Anheuser-Busch would see it capturing half of the U.S. beer market and a fifth of China and Russia.
The Belgian-Brazilian brewer said its foothold in emerging markets such as China and Brazil would boost sales of Anheuser-Busch's brands.
Anheuser-Busch agreed on July 14 to be taken over by InBev, heading off what had promised to be a long and acrimonious takeover battle for the St. Louis-based brewer. Ahead of the takeover, the company had already planned to save money by shedding 1,185 positions -- mostly by offering early retirement and not filling existing vacancies.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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