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Heileman halts talks with Stroh.

Heileman halts talks with Stroh

Stroh Brewery Co. and G. Heileman Brewing Co. have cut off talks of a possible merger or sale of some Heileman brands, Heileman's president Murray Cutbush said.

Cindy Brown, Cutbush's secretary at Heileman's LaCrosse, WI, offices, was out of the office and unavailable for comment earlier in the week.

Cutbush said Stroh had approached Heileman "regarding a possible merger" after a deal for Stroh to sell to Adolph Coors Co. fell apart last year.

Lacey, a spokeswoman for Stroh, declined to comment.

Stroh executives were examining a three-way deal that would have included unidentified banks as partners, analysts said. The partnership would have enabled Stroh and Heileman to combine without putting up any cash. The banks would provide financing and reap part of the profits as owners.

There was no indication why the talks broke off.

Earlier this month, Heileman said its breweries in Frankenmuth and St. Paul, MN, were for sale, along with the brands they produce.

Heileman employs about 200 people at the Frankenmuth brewery, which it purchased from Carling National Co. in 1979.

Stroh has been looking for potential partners since February 1989 amid financial struggles that have resulted in more than 300 layoffs and sales of some Stroh properties and divisions.
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Title Annotation:G. Heileman Brewing Co., Stroh Brewery Co.
Publication:Modern Brewery Age
Date:Mar 5, 1990
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