Reporters' BLOG

October 2008
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Money Crisis and the AB Deal

10:38 PM Thu, Oct 09, 2008 |

So it's perhaps a bit of irony that the financial crisis could end up stopping Inbev's bid for AB. But financial experts believe it is a real possibility and AB stockholders seem to be worried since they're selling at 61 dollars a share when they know Inbev is willing to pay 70 dollars next month.
But despite the growing doubt created by troubled banks that may not be willing to finance the deal, there are also reasons to believe the deal will happen.
Experts agree Inbev is a strong company and not considered a risk for banks and A-B looks strong posting very good sales in the third quarter. And Inbev is also risking paying a one point five billion dollar penalty to AB if the deal doesn't happen.




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