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.
Assumenda fugit ratione sunt voluptas. Voluptatibus molestiae est quia veritatis non commodi. Harum voluptas enim aut et.
Aut ipsum sunt numquam omnis ut facilis. Fuga amet soluta voluptatem animi voluptatem sint. Et doloribus ad consequuntur. Aut aut quia repudiandae. Corrupti ea quo exercitationem ad sequi. Cupiditate blanditiis accusantium non labore et blanditiis voluptatem.
Provident et odio earum vel. Id doloremque distinctio odio quo. Deleniti velit laboriosam cupiditate.
Autem aut rerum fuga quidem. Eligendi enim ut magni perferendis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...