Talk about a family feud! As Anheuser-Busch Cos. continues to fight off a potential hostile takeover by InBev SA, the bidder is
threatening to oust the board, like a
dissident shareholder might. And amongst the nominees on its slate is Adolphus A. Busch IV, the uncle of Anheuser-Busch's president and CEO August Busch IV. So who is Adolphus Busch? A black sheep per chance?
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Adolphus Busch is the half brother of August Busch III, the former chairman, president and chief executive officer and current director of Anheuser-Busch. He was the first Adolphus not to have taken a CEO position at the company, according to Wikipedia. Additionally, Adolphus Busch is a real estate developer and conservationist, notes the St. Louis Post-Dispatch. While he's never worked directly for the family business, Adolphus Busch worked for rival Coors when in college, and he has owned and operated beer distributors in Florida and Texas, according to MarketWatch.
However, Adolphus Busch's involvement with InBev's dissident slate isn't entirely surprising -- and not just because of his stint as a Coors employee either. From the very start of the unsolicited bid, he has been outspoken about selling to InBev. His June letter to the board of directors states:
I like most Anheuser-Busch shareholders and all Busch family members, pondered the future of our company. At first I assumed that we would have to make a very difficult choice between an excellent price for my Anheuser Busch shares and the legacy created by my family. As I reflect on the changes in the global beer business. ... I realized it is not really a choice at all.
As for InBev's motives, the bidder said Adolphus Busch will represent the shareholders' voice on the board, according to an SEC filing.
Meanwhile, Adolphus Busch sold 5,000 shares on May 21, 5,000 on May 23 and 15,000 shares on June 20, two days after InBev went public with its offer, The St. Louis Post-Dispatch points out. He still owns 215,608 shares.
"This is somebody who just popped out of the woodwork," Eric Shephard, executive editor of trade publication Beer Marketers Insights, told MarketWatch. "He is a family member who hasn't been involved in the family business. I don't know whether he is looking for his 15 minutes [but] it is another complicating factor." - Maria Woehr
See The Daily Deal: InBev in hostile crouch for Bud
See Dealscape: InBev behaving like an activist investor
