Question about InBev's hostile approach
I have a quick question which can be pretty dumb, but please bear with me.
I read that InBev took a rather hostile approach for Anheuser-Busch and filed documents with the SEC seeking to oust its board members.
Is this a pretty common/standard approach in M&A when a potential acquirer trying to push the deal?
I always thought you have to have enough stake in a company to be able to have that kind of power (like Carl Icahn for Yahoo case), but I do not believe InBev has shares in Anheuser-Busch?
Again, sorry if it's a dumb question, but I hope someone will shed lights on this matter for me. Thanks.
Umm, anybody?
A potential acquiror usually approaches the BOD of the target to start discussions. If the BOD rejects them flat out or refuses to be reasonable towards a credible offer, the acquiror has the right to start a proxy battle (taking it to the shareholders) in order to state their case. While I haven't been keeping up with the particulars of this situation, I imagine it's a move by InBev to say to the BOD that if they were to enter into a proxy battle and if they are successful they would be removing the board members. It's basically a scare tactic to get the BOD to open discussions.
Thank you GameTheory! That makes a lot of sense.
Thank you GameTheory! That makes a lot of sense.
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