What do Anheuser Busch, Hershey and Yahoo Have in Common?

Watching this brewing battle with Anheuser Busch (BUD) and InBev (INBVF.PK), I couldn’t help but reflect on the similarities with Hershey’s board and the politicians surrounding Hershey, Pennsylvania, who told the foreign company (Cadbury) to Kiss Off. With all the St. Louis and Missouri politicians and that “Show Me” attitude, it isn’t surprising that Republican Gov. Matt Blunt and other politicians are trying to block it with that same protectionist refrain used during the Hershey deals…about how the company is a national treasure, about how important it is to the community, about how this is going to cost so many jobs, and about how shareholders should not choose dollars over jobs.

For the record, I suggest investors should never buy a stock based upon how many employees the company has!

And, oh by the way ... politicians and other protectionists ... you might want to check out this headline from late last week when the company announced its intention to cut 10-15% of its workforce. Hey, I thought the politicians were going to save jobs by blocking a merger!?! Now it looks like they are silent about the company cutting over a thousand jobs to block the merger. I guess they think that’s okay.

Regardless of what you think of those political arguments….please look what happened to HSY stock since the Pennsylvania politicians had their way.

As for YHOO, I just cannot miss the comparison with a board that did nothing to boost a stock price for 4 or 5 years (like BUD) and then suddenly, they know what is in the best interests of shareholders to block an acquisition. Nevermind that the acquisition was the sole reason for the stock to increase and never mind that blocking the deal or having the suitor walk away will end up with a sudden decline in the stock. Will BUD’s board ensure its shareholders are the next to get Yahooed!?

Comments

[Foppa21]

Dumb*ss,
Check your facts before you spew your swill! They are eliminating positions via an early retirement package. See the filing for the $300 - $400 Million dollar expense to be incurred this year.

I thought you analysts were supposed to actually know something. No wonder the economies in the crapper!

[Budman1]

Bloody English still trying to win the war with words..Kicked there butts,, save there butts,,and now they want to sell our butts,,Thanx but no thanx,, we will fight this war against the bannana pealers and win..Oh yes Mr. Steinhardt,,,,Bite Me..

[Dave - St. Louis]

Life isn't always about dollars. Sometimes heritage and values are more important in both the long and short run. People need to think about the long run and ignore the money hungry philosophy you propose.

[PhillyD]

I'm not a shareholder but I get a kick from the sentiment that "heritage and values" are more important than money. If that's true then why do the workers at Bud continue to expect more money while their investors should not expect more money? What's wrong with those values! And if that's the heritage of Bud then they can keep their heritage.

The investors of Bud are the big pensions (remember those hard workers all over America) and the smaller investor (oh yeah ... the same hard American workers) and why shouldn't they expect some return on their investments? Or should the rest of the hard workers of America invest their money at no gain (or even a slight loss) for the benefit of creating more jobs for those at Bud?

I don't think so.

[Dave - St. Louis]

PhillyD is an idiot. I am a shareholder and am perfectly happy with my holdings. My original investment has grown 650%. Anheuser Busch does more for St. Louis than any other company. That is also true for other cities where their breweries are located. They are good corporate citizens. So, if you are not a shareholder, get your facts straight before spouting off......

[Glama53]

RE: HSY. Another first for the "what do we do now" political non-management. I have owned this company for 34 years and this is the first year without a dividend boost in September. Why care, they do not own any stock.