Anheuser To Cut $1 Billion To Prove Competence

Clusterstock:

Anheuser-Busch (BUD), having formally rejected the $65/share InBev takeover offer, now must pretend it's serious about trying to create shareholder value (at least for a while). Thus, the company has announced a new restructuring plan:

* $1 billion in cost-cutting
* massive firings
* selling off assets like theme parks

Read the whole story: Clusterstock

Comments

[Sundialsvc4]

Presumably, they want to continue selling beer.

When "a bunch of finance-guys" come rolling into town (and InBev is nothing but...) two things always lose: (1) the product, and (2) the employees.

First clue: they say "we'll cut $1 billion," not "we're going to dump 40,000 people out of their jobs."

Now, I'm never going to be one to say that AB actually makes "good beer." They don't. Never have. Rather, they make "the second beer," and "the third beer," and "the next six pack." The stuff's mostly water, so you can actually drink a six-pack and not wind up in the featured photograph at the office-party afterparty. But are these "takeover mavens" thinking about Beer? Or people? Nope, just "shareholder value."

A company is supposed to be about more than just the gavel-price of its stock certificates. I've never seen "finance guys" ever do any good at all for a "company," its people, or its products.

[iambusto]

Nothing is ever good for you liberals is it.

Anheuser Busch has only one way to avoid being taken over. Show commitment to sharholders that AB is serious about cutting costs. I dont think layoffs are necessary to cut costs.
They could.
shed business units that are bring the ROE down.
they could cut marketing costs, SG&A costs. Does AB really need 8 ad spots during Superbowl. cut 4 of them and you save 5 million approx right there. jeez.

anyways. At least AB has good corporate governance compared to some other companies. they dont have poison pill, they dont allow greenmail, they dont have staggered boards....­all of these are poor forms of governance which AB doesnt follow. a very good sign.

[BigBagel]

$65.00 bucks is pretty good for a company that was in the mid 40's a few weeks ago. If they had shareholder interests in mind they'd take the offer. Now they want to cut costs??

[shyamg22]

I agree with all that you say but i don't think it is a liberal v. conservative thing.

All the politicians and talking heads in ST.L/misso­uri (a red state/red governor) have been up in arms against this takeover, spouting all sorts of bollocks.

[ibsteve2u]

Ahhh, yes..."the shareholde­rs"...thos­e people who have already made their money, and view anybody trying to earn some of their own by working for the corporations whose "shares" they hold as an unnecessary obstacle to their accumulation of more wealth.

Makes you hope that this planet truly is privately held, doesn't it?

[BigBagel]

Let me guess, you don't know a hell of a lot about business. Good guess?