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Coors, Stroh letter of intent expires; talks continue with "fresh outlook".

Coors, Stroh letter of intent expires; talks continue with "fresh outlook"

Coors Brewing Co. and the Stroh Brewery Co. announced last week that the letter of intent expired without a final agreement being reached.

The expiration of the letter, regarding Coors' plan to purchase of nearly all of Stroh's domestic brewing interests, now frees Stroh to hold discussions with other potential buyers. The two parties, however, have said that negotiations will continue, but on terms different from the original letter of intent.

"We want to take a fresh look at things," said Heidi Buehler, spokeswoman, Coors. "Obviously things are different now, so the negotiations have to take a different angle."

Peter Coors, president, Coors, cited as reasons for the expiration unresolved issues in the transaction as originally contemplated, as well as concern with resolving antitrust issues within a time frame acceptable to both parties.

"We felt it best for both parties to take a fresh look at things and explore other alternatives," Coors said.

Peter Stroh, chairman, Stroh Brewery Co., noted that Stroh expects to continue discussions with Coors and will consider opening talks with others, although he declined to specify.

"Although we continue to believe that consolidation in the brewing industry would be good for long-term competition, we are taking agressive steps to strengthen our ability to compete independently," Stroh said.

Last month, the Belgian brewer, Artois Piedboeuf Interbrew S.A., revealed that it had been looking into a deal with Stroh before Coors made its bid. However, Wall Street analysts were unclear whether Interbrew would continue to pursue Stroh.
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Title Annotation:Adolph Coors Co., Stroh Brewery Co.
Publication:Modern Brewery Age
Date:Dec 25, 1989
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