Beer Wars: Anheuser-Busch InBev (BUD) Belgian breweries are high and dry
Today's Financial News - Posted January 20, 2010
Anheuser-Busch InBev (NYSE:BUD) investors get a taste of European medicine
by J. Christoph Amberger
Baltimore, MD: People wonder why companies leave Europe for Asia. I wonder why that would still come a a surprise.
Today, Reuters reported that Anheuser-Busch InBev NV (NYSE:BUD) announced its Belgian production i(home of the gluttonous Inbev, which gobbled up American idol Anheuser-Bush without as much as a belch last year) had ground to a complete standstill after nearly two weeks of blockades over job cuts at its breweries.
Belgian workers have laid siege to InBev’s breweries in Leuven and Liege for 13 days and for a week at Hoegaarden protesting plans to lay off less than 10% of its Belgian workforce. No hops, no malt, no barley can come in, no empty bottles and crates and other packaging. Beer storage is at 100% capacityl.
InBev is wobbling: It has frozen its restructuring plan. I believe it eventually will cave in to union demands.
Shares of NYSE:BUD have shed only 2%-plus in early morning trading. The rewards of globalism: By acquiring non-European companies, InBev has prudently reduced the risks of being a large fish in a high-cot, entitlement-fed pond.
The stock is still trading near its pre-merger highs. We see an additional downside to $47.50. Resolution of the dispute may be good for a 10% rise from that bottom.
For more of Amberger’s continuing market commentary, click right here!
Next Article: Dip in metals miners could spell buying opportunity
Be the first to leave a reply.
Your comments are welcome
Follow TFN via RSS or Twitter |
 |
 |
 |
Advertisement
Latest Headlines
- The Big Picture for Sinobiopharma, Inc. (SNBP)
- Beazer Homes USA, Inc. (BZH) and Hovnanian Enterprises, Inc. (HOV) up despite horrid housing news
- The FDA catalyst: 2010 moves in MannKind (MNKD), Roche Holding (RHHBY), Acorda Therapeutics (ACOR) show it still works!
- Steepest drop since Feb. 2009: Here we go again!
- Is the silver run over? Coeur d’Alene Mines (CDE), Silver Wheaton (SLW), Alto Group (ALTO), Hecla Mining (HL), Endeavour Silver (EXK) close down