Craft Brew Alliance Shares Fall as Anheuser Busch Passes on Bid
August 23 2019 - 11:29AM
Dow Jones News
By Colin Kellaher
Shares of Craft Brew Alliance Inc. (BREW) fell more than 15% on
Friday after beer giant Anheuser-Busch InBev A.B. (BUD) declined to
make an offer for the company.
Under an earlier partnership, Anheuser-Busch had until Friday to
make an offer of at least $24.50 a share for the roughly 70% of the
craft brewing collective it doesn't already own.
Anheuser-Busch, which holds a 31.3% stake in Craft Brew
Alliance, on Friday said it would instead make a $20 million
one-time incentive payment to the Portland, Ore., company.
Craft Brew Alliance said the payment bolsters its balance sheet
and said it would provide an update on its business strategy and
full-year financial outlook on Sept. 5.
Anheuser-Busch said its partnership with Craft Brew Alliance
"continues to be a key complement to our industry-leading craft
portfolio and we look forward to working together for many years to
come."
Craft Brew Alliance shares were recently down 16.6% to
$10.81.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
August 23, 2019 11:14 ET (15:14 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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