Anheuser-Busch (BUD) Cut After Takeover Surge: Cost-Cutting Will Wreck Budweiser

rumours of a $65/share InBev takeover of Anheuser-Busch (BUD) have fuelled a surge in BUD’s stock. With Warren Buffett, 5% shareholder of BUD, in favour of the deal and friendly talks likely to begin today, the merger is becoming more likely. Which, for Deutsche Bank, means it’s time to cut and run:

Deutsche has downgraded BUD from Buy to HOLD with a $56 target. DB sees aggressive cost reduction necessary to make the deal work. This cost-cutting, they believe, would hurt BUD’s brands.

See Also: This Bud’s For Belgium: InBev Wants Anheuser-Busch (Again) (BUD)

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