Sunday, July 13, 2008

Anheuser-Busch (BUD) Deal Finalized

Reuters and WSJ today reported that BUD agreed to be acquired by Belgium Based Interbrew for a little under 50 billion dollars. The $70/share bid would create the largest brewing company in the world.

BUD shares rose $5.29 to close at $66.50 on Friday, after reports from WSJ that InBev has increased its offer to shareholders by $5/share to $70.

I would consider selling half of my stock on Monday morning at the open, as I expect a gap up which would be close to the offering price. I would keep the other half and tender it later. You could read my dividend analysis of Anheuser-Busch (BUD) here.

This acquisition, just like the recent acquisitions of ROH and WWY strongly reiterates my point that solid dividend growers are a great long-term investment in general. The only issue with acquisitions is finding new opportunities from the shrinking supply of quality dividend opportunities out there.

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