When all else fails, sue. That’s America, right? And Anheuser-Busch (BUD) is as American as it gets.
BUD is suing InBev and claims the potential takeover is “an illegal plan and scheme by InBev, through a course of deceptive conduct, to acquire control of Anheuser-Busch at a bargain price.”
Here are some of the more interesting issues BUD has with InBev (other than wanting more money or for them to go away):
BUD disputes that InBev actually has the financing lined up for the deal:
A-B says InBev’s financing claim is “materially misleading” because it is “certainly rife with conditions,” allowing the proposed lenders to walk away.
BUD is unconvinced InBev plans to keep their headquarters in St. Louis because of…Cuba:
“This Cuban business is substantial, with more than 570 full-time employees, distribution centres located throughout the island, and sales accounting for approximately 44% of total beer sales on the island. In 2007, it sold 1 million hectoliters of beer (more than 26 million gallons) which were brewed by InBev in its brewery in Holguin, Cuba.”
America’s Cuban trade embargo could make it difficult for InBev to have its North American operations in St. Louis–which is why BUD is going on about it.
We doubt the small percentage of sales InBev gets from Cuba (less than 0.5% of total sales) would derail the deal. The foreign brewer will just sell the unit if they have to. A-B is just trying to further cloak itself in the American flag by invoking “Cuba.” Good luck with that, but it’s not the 1960s anymore.
Read the full complaint here.