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A-B to block buyout.

A-B to block buyout

The death of August A. Busch, Jr. meant that nearly 36 million shares of Anheuser-Busch, Inc. stock--nearly 12.5 percent of the company--will fall to more than 25 heirs and trust accounts. Some would think that the brewing giant could be ripe for a hostile takeover, but analysts disagree.

Anheuser-Busch began preparing for the death of its honorary chairman of the board nearly two years ago by asking future heirs and trustees to give A-B first crack at any shares they decide to sell. The New York investment bank Dillon, Read & Co. will lead a secondary offering of the heirs' shares, which will also be bought up by Anheuser-Busch. By selling the shares in blocks, bank officials said, shareholders are likely to get the best price.

However, the heirs are not required to sign the agreement to sell to the brewer, and if enough decide not to sign, an outside third party could get control of their shares, analysts reported.

According to Anheuser-Busch's March, 1989 proxy report, August Busch III, current chief of the brewery, holds 689,000 shares. Board members with significant share holdings are: Peter Flanigan, managing director, Dillon, Read, with 906,400 shares; Richard Baker, former chairman of Ernst & Ernst, with 33,900 shares; Fred Kuhlmann, vice chairman of the AB board, with 54,158 shares; and Walter Reisinger, customer services manager, with 875,397 shares.
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Title Annotation:Anheuser-Busch
Publication:Modern Brewery Age
Date:Oct 16, 1989
Previous Article:Companies to file suit against Coors Co.
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