One small, albeit obvious, fact is being overlooked about the potential Anheuser-Busch (BUD)-InBev deal. Amid all the patriotic bluster, BUD’s employees (and many more people in and around the St. Louis area) stand to make billions (St. Louis Business Journal):
St. Louisans hold billions of dollars worth of Anheuser-Busch stock, and they are facing a big payday…should the brewery be sold to InBev.
…St. Louisans have been accumulating and hoarding Anheuser-Busch stock for generations. “There is a multigenerational concentration of A-B stock in St. Louis with a very low cost basis,” said Tom Chulick, UMB’s president of asset management in St. Louis.
“We’ve run a few reports and estimate we have $750 million to $1 billion in assets under management that involves A-B stock,” said Steve Mullin, U.S. Bank’s market leader for private client and private asset management. “That doesn’t even count what we have in custody, in non-managed assets.”..
As for how much of the wealth is in St. Louis, [Gerry] Sparrow [of Sparrow Capital Management] said, “It doesn’t matter. Whatever it is, it will be 30 per cent more.”
So next time you hear about how furious St. Louis is over the sale of their hometown brewery, think twice. All those Euros can buy a lot of Budweiser, even if it becomes a European beer.
See Full BUD-InBev Coverage and Analysis
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