Lawsuit Overview
<p>On Monday July 7th, 2008 Americas biggest beer brewer Anheuser-Busch began to fight back in the hostile takeover attempt from InBev to take over Anheuser. Anheuser Busch Co. Inc. has filed a lawsuit in St. Louis federal court against Belgian brewer InBev, accusing InBev unsolicited takeover bid isn’t just bad for the bottom line, but it is also an “illegal plan and scheme” to buy the U.S. beer maker “at a bargain price”. Anheuser claims that InBev is deceiving Anheuser-Busch shareholders about the company’s $46 billion takeover bid by concealing a number of facts. Anheuser alleged besides other allegations, that InBev took out a full-page ad in Tuesday’s St. Louis Post-Dispatch, saying the takeover would make for a stronger, more competitive global company. It says Budweiser would be expanded globally, and St. Louis would serve as North American headquarters. Anheuser-Busch questioned that promise in its lawsuit, saying InBev’s presence in the U.S. could be prohibited by federal law because of the brewer’s operations in Cuba. According to the lawsuit InBev operates the Bucanero SA brewery in Cuba, which brews, sells, and exports beers including the Bucanero, Cristal and Mayabe brands. The brewery employs 570 people and controls about 44 percent of the Cuban beer market. According the lawsuit the U.S. Trading with the Enemy Act might prohibit InBev from “being managed, supervised, or otherwise monitored from the United States” because of its Cuban holdings”. Anheuser says it wants first to make sure certain alleged false and misleading statements are fixed. In a statement Gary Rutledge, Anheuser-Busch’s vice president of legal and government affairs said “Anheuser-Busch is asking the court to prevent InBev from taking any further steps to solicit Anheuser-Busch’s shareholders until it provides full and accurate information concerning its proposal”. The new Anheuser-Busch lawsuit follows InBev’s lawsuit to unseat Anheuser’s board of directors, which rebuffed its rival’s $46 billion offer.</p>