Thursday, June 12, 2008

Buffett, Bud, InBev and the Nazis (BRK.A, BUD)

Here's a threefer. First, from 24/7 Wall Street:

Berkshire Hathaway & Buffett, The True Anheuser-Busch Winners (BRK.A, BRK.B, BUD)
Everyone has reported on the huge acquisition offer from InBev for Anheuser-Busch Companies Inc. (NYSE: BUD). What is interesting above and beyond the global beer initiatives and consolidation is that Berkshire Hathaway, Inc. (NYSE: BRK.A, BRK.B) owns a fairly massive slug of the company stock. As Budweiser is an easy brand to recognize it easily fits within Buffett's "hold forever" strategy....MORE (worth a look)

At MarketBeat, David Gaffen has a headline and lead-in that, well, lead you in:

Real Men of Genius: InBev’s Currency Analysts
Joanna Slater has this report on a favorite MarketBeat topic — beer.
Does InBev owe the weak dollar a drink?

That’s what some analysts are suggesting following the news that the Belgian-Brazilian beer giant had launched a $46 billion bid for Anheuser-Busch Cos. If successful, the deal would be the third-largest foreign acquisition of a U.S. company, and the biggest all-cash deal ever.

Economists have long predicted that the dollar’s extended slide would translate into foreign appetite for U.S. assets, since they can be had at bargain prices in other currencies. Plus it means the cost of manufacturing in the U.S., relative to elsewhere, has fallen dramatically. Eventually, if foreign inflows multiplied, it would increase demand for dollars and contribute to a recovery for the beleaguered currency....MORE

Finally, a 2007 Climateer Investing post, one of our first on the connection between biofuels and crop substitutions, a bit of history:

Global warming drives up prices on beer in Germany

"Beer prices are a very emotional issue in Germany ..."

"It's absolutely outrageous that beer is getting even more expensive," Glutsch said, gulping down the last swig of his half-liter dark beer at lunch. "But there's nothing we can do about it - except drinking less and that's not going to happen."

"Beer drinkers across the country will get upset when beer prices will rise even further in the fall," said Koenig. "We are therefore demanding that government stop its subsidies for biofuels immediately."

From Pravda

Hat Tip Environmental News Network (although they mention the AP version, yr. hmbl. svt. went in search of the definitive story)

This is serious. Does anyone remember what happened the last time Bavarians got pissed and pissed off?

Lousy architecture, dedicated to the memory of those felled 8-9 Nov., 1923.

The corporate history, current back to 1920, is:

Inbev acquired
Spaten-Franziskaner-Löwenbräu-Group in 2004 which was created by the merger of Spaten and Lowenbrau in 1997. Lowenbrau aquired Burgerlisches Brauhaus (BB) in either 1920 0r 1921. On Nov. 9, 1923 BB owned the Burgerbrau Keller, where a secular religion was founded, complete with myths, heroes, icons and a messiah.

All the companies were publicly held, although I can't imagine the markets were very liquid in April, '45.

In the words of Hermann Goering: "Shut up. You've got your beer, haven't you?"