Stockholder revolt as brewery suits rise

By Christopher Leonard  |   2008-7-4  |     NEWSPAPER EDITION

ATTORNEYS for Anheuser-Busch Cos Inc have argued that two shareholder lawsuits in the brewer's hometown should be suspended.

The move comes as a Delaware judge considers nearly a dozen similar lawsuits related to the possible takeover by rival brewer InBev.

If the lawsuits are suspended in Missouri, it means Delaware will become the focus for frustrated shareholders who say Anheuser-Busch's board of directors is hurting the firm's long-term stock value by not accepting InBev's offer.

The Belgian brewer's offer price of US$46 billion amounts to US$65 a share for Anheuser-Busch stockholders, a premium over the company's US$50 share price before market speculation about InBev's offer began to drive the price up.

Anheuser-Busch has rejected InBev's offer, laying out a plan to drive up its stock price within a few years by cutting costs and increasing prices.

Shareholders have a right to sue a company's board of directors if they feel the directors aren't acting in the interest of all those who own its stock.

The suits could put more pressure on Anheuser-Busch's board.

InBev has indicated it will take its offer to shareholders, who can overrule the board.

The shareholder lawsuits keep piling up, even as Anheuser-Busch and InBev spar over the purchase offer.

Attorney Steve Sanders, representing Anheuser-Busch, said on Wednesday morning that nine such lawsuits had been filed in Delaware. But the figure wasn't accurate for long. A new lawsuit was filed during the lunch hour, bringing the total to 10, he said.

The New Jersey Carpenters Annuity and Pension Funds filed a lawsuit in St Louis.