Dethroning the King (62 page)

Page 194 “He spent Wednesday night prepping . . .” Tom Santel, phone interview by author, June 26, 2010.

Page 197 “By the end of that year . . .” Corporate information provided on Modelo web site (
www.gmodelo.com
).

Page 204 “The scare tactic worked well . . .” Robert Slater,
The Titans of Takeover
(Beard Books, 1999), 167.

Page 206 “But The Fourth said he wanted to push ...” Matthew Karnitschnig and David Kesmodel, “Anheuser-Busch Gets a D,”
Wall Street Journal
Deal Journal, June 16, 2008.

Page 206 “They were trying to change the board . . .” James Forese, phone interview by author, May 26, 2010.

Page 206 “The Third had been one of the AT & T directors . . .” Tim Barker, “Loyalty of A-B Board May Be Put to the Test,”
St. Louis Post-Dispatch
, June 20, 2008.

Page 208 “So I don't think there are any questions . . .” Outstanding Directors Exchange
Agenda,
July 14, 2008 issue.
www.theodx.com/outstandingdirectors/Busch%20071408%20Agenda%20issue_fnl.pdf

Page 210 “But on July 11 . . .” CNBC, Julia Boorstin interview with Warren Buffett from Sun Valley, Idaho, July 11, 2008.

Page 210 “They and other directors ...” Margie Manning, “GenAm Board Settles for $30 Million,”
St. Louis Business Journal,
January 17, 2003.

Page 212 “Citigroup was set to earn . . .” Anheuser-Busch definitive proxy, October 2008.

Page 212 “Anheuser's directors had known . . .” General Henry Hugh Shelton, phone interview by author, June 10, 2010.

Page 216 “Augusta is famous for its pristine links . . .” “Augusta National Golf Club Members List,”
USA Today
Projects Staff, August 4, 2004.

Page 218 “At six-foot-four . . .” Roger O. Crockett, “The Last Monopolist,”
BusinessWeek,
April 12, 1999, Cover story.

Page 219 “Loucks had become an Anheuser-Busch director . . .” Julia Flynn Siler, David Greising, and Tim Smart, “The Case Against Baxter International,”
BusinessWeek
, October 7, 1991.

Page 223 “So he's seen all the deals . . .” Outstanding Directors Exchange
Agenda,
July 14, 2008 issue.

Page 224 “When August IV started . . .” Douglas Warner, phone interview by author, June 14, 2010.

Page 230 “To show that they weren't stonewalling . . .” Anheuser-Busch press release, June 26, 2008.

Page 231 “I believe that as directors . . .” “Adolphus Busch IV's Letter to Busch Board,” Reuters, June 20, 2008.
www.reuters.com/article/idUSN2044456620080621

Page 231 “Andrew Busch, another half-brother . . .”
New York Times
DealBook, June 22, 2008.

Page 239 “I was wrong on that statement . . .” Call transcript,
http://yahoo.brand.edgar-online.com/EFX_dll/EDGARpro.dll?FetchFilingHtmlSection1?SectionID=6019032-43754-68909&SessionID=C9W3We-yRPmMhz7
.

Page 243 “ [T]heir ability to come along with us . . .” David Kesmodel and David Luhnow, “Anheuser Courts an Ally in Mexico,”
Wall Street Journal
, June 13, 2008, B1.

Page 257 “Ahead of the previous year's July Fourth ...” The Beer Institute, “Fourth of July Ranks Tops in U.S. Beer Sales New Data Shows Beer Contributes Billions to National Economy,” press release, June 26, 2007 via PRNewswire.

Page 259 “He had, however, been abruptly replaced . . .” Alex Berenson, “A Long Shot Becomes Pfizer's Latest Chief Executive,”
New York Times
, July 29, 2006.

Page 268 “He didn't push them in one direction . . .” General Henry Hugh Shelton, phone interview by author, June 10, 2010.

Page 271 “Anheuser's team of dejected executives . . .” Tom Santel, phone interview by author, June 26, 2010.

Page 271 “The following morning, Tom Santel . . .” Ibid.

Page 282 “In order to make that happen . . .” Douglas Warner, phone interview by author, June 14, 2010.

Page 283 “This is going to happen . . .” Ibid.

Page 287 “He'd be a hands-on executive . . .” General Henry Hugh Shelton, phone interview by author, 10, 2010.

Page 287 “Yet after the board promoted him . . .” Ambassador James R. Jones, phone interview by author, June 1, 2010.

Page 289 “The two men circled back . . .” Warner, phone interview by author, June 14, 2010.

Page 307 “InBev's record of corporate philanthropy . . .” “Anheuser-Busch's New Brew,”
St. Louis Business Journal
, July 31, 2009.

Page 315 “Stokes walked away with $ 160.9 million . . .” Christopher Tritto, “A-B Brass Catch Gold Ring from InBev,”
St. Louis Business Journal
, November 21, 2008.

Page 324 “Rather than hitching a town car . . .” Jeremiah McWilliams, “Brito Begins to Brew,”
St. Louis Post-Dispatch
, July 16, 2008, A1.

Page 325 “The contrast between globe- . . .” Ibid.

Page 326 “And they came on top . . .” “Anheuser-Busch's New Brew,”
St. Louis Business Journal,
July 31, 2009.

Page 326 “I just didn't think . . .” Jeremiah McWilliams, “The New A-B ‘More of What You Need, and Less of What You Don't,' ”
St. Louis Post-Dispatch,
March 8, 2009.

Page 326 “They did so, only to discover . . .” Walter Reisinger, Jr., interview by author, St. Louis, Missouri, November 4, 2009.

Page 327 “Santel, who was paid $26.5 million . . .” Christopher Tritto, “A-B Brass Catch Gold Ring from InBev,”
St. Louis Business Journal,
November 21, 2008.

Page 328 “We beat the king of commercials . . .” Bruce Horovitz, “ ‘Two Nobodies from Nowhere' Craft Winning Super Bowl Ad,”
USA Today,
December 31, 2009.

Page 328 “He stood to earn $20.6 million . . .” Tritto, “A-B Brass Catch Gold Ring from InBev.”

Page 328 “The Fourth's team had been willing to pay . . .” David Jones, “AB InBev to Buy Modelo This Year; Broker Evolution,” Reuters, March 9, 2010.

Page 329 “Chief Financial Officer Randy Baker . . .” Tritto, “A-B Brass Catch Gold Ring from InBev.”

Page 329 “Anthony Ponturo, who had been the company's sports marketing head . . .” Ibid.

Page 330 “She said Anheuser-Busch maintained . . .” Jonathan Stempel, “Ex-Anheuser Female Executive Sues for Gender Bias,” Reuters, October 27, 2009.

Page 330 “As he walked into the conference room . . .” McWilliams, “Brito Begins to Brew.”

Page 330 “He didn't exactly need the cash . . .” Tritto, “A-B Brass Catch Gold Ring from InBev.”

Page 331 “Busch was a no-show at industry events ...” Jeremiah McWilliams, “Busch Slips Off Stage Despite Positioning for Role in InBev Spotlight,”
St. Louis Post-Dispatch,
August 30, 2009, A1.

Page 332 “Secretaries were fired . . .” “Brazilian Style at the Largest Brewery in the World,”
Exame,
February 2010.

Page 332 “I can buy my own beer . . .” Ibid.

Page 332 “Even expenses like color printing . . .” Jeremiah McWilliams, “The New A-B.”

Page 332 “Roughly a year and a half after the deal closed . . .” Kelsey Volkmann, “Anheuser-Busch Adds Fee for Clydesdales Appearances,”
St. Louis Business Journal,
April 12, 2010.

Page 333 “One vendor of beechwood chips lost out . . .” “Anheuser-Busch's New Brew.”

Page 334 “Schlafly's founder said . . .” “Brazilian Style at the Largest Brewery in the World.”

Page 333 “InBev still used the Anheuser jets . . .” Todd C. Frankel, “A-B Jets Linger as Clipped Wings,”
St. Louis Post-Dispatch,
January 10, 2010, A1.

Page 335 “Anheuser's St. Louis employees . . .” “Brazilian Style at the Largest Brewery in the World.”

Page 336 “Brito was poised to pull in . . .” Ibid.

Page 336 “Out of their estimated $50 million . . .” J.P. Morgan research, “Anheuser Busch InBev,” January 26, 2009.

Page 336 “Weiss relocated from Paris . . .” Liam Vaughan, “Lazard's Weiss Is Year's Busiest Banker,” Mergermarket, as quoted in
Wall Street Journal,
December 14, 2009.

Page 337 “At this point, we think . . .” “Credit Market Instability Rattles InBev's Takeover of Anheuser-Busch,”
St. Louis Business Journal,
citing Ann Gilpin, Morningstar, October 3, 2008.

Page 338 “The ruling confirmed . . .” Clementine Fletcher, “AB InBev Wins Dispute Over Ownership of Modelo Stake,” Bloomberg, July 12, 2010.

Page 339 “All together, a scrap heap of $660 billion . . .” Serena Saitto, “Goldman Leads in M&A as InBev Deal Fails to Add Fizz to Fees,” Bloomberg, March 2, 2009.

Page 340 “Sandy was the perfect guy . . .” Heather Wolf, “Sandy Warner The Stalwart Director,” Outstanding Directors Exchange.
www.theodx.com/outstandingdirectors/WarnerSandy%20OD%20web.pdf
.

Page 343 “They did so separately ...” Jeremiah McWilliams, “Busch Slips Off Stage Despite Positioning for Role in InBev Spotlight,”
St. Louis Post-Dispatch,
August 31, 2009, A1.

Page 344 “Let's go get 'em! . . .” Ibid.

Page 344 “She Was His Wife . . .”
Riverfronttimes.com
, January 30, 2009.

Page 344 “A gossip column in the local paper reported . . .” Deb Peterson, “Wonder What August Busch IV Has Been Up To?”
St. Louis Post-Dispatch,
September 28, 2009.

Page 346 “Gussie and The Third didn't speak . . .” David Kesmodel, “Beer Clan Anheuser CEO Fights for His Legacy,”
Wall Street Journal
, May 27, 2008, A1.

A
few people who aren't brewers or bankers nonetheless contributed immensely to my ability to get this book onto store shelves. My heartfelt thanks go to my agent, Andy McNicol, at William Morris Endeavor, and to Pamela van Giessen and Emilie Herman at John Wiley & Sons.

I'm boundlessly grateful to my husband, Micah Levin, for serving as baby bather, proofreader, chef, and cheerleader at various points during the book-writing process, and to my son, Miller, for his patience and joyfully sunny disposition right from the start.

I must also thank the rest of my family—James and Faye MacIntosh; Emily, Trevor, and Ella Fetters; and Kate MacIntosh, Karl Donner, Paul MacIntosh, Daniel Levin, Judith Karlen, Sherry Levin, James Friedberg, Brendan Levin, Tonya Fletcher, and Erin Levin—for providing such a tightly woven safety net. I hope I can return the favor. My profuse apologies go out to them and to all of the friends and colleagues I was remiss in contacting for a while.

I'm also grateful to the journalists at the
Financial Times
in New York (and to Francesco Guerrera in particular), who were willing to pinch-hit in my absence during my book leave, and to Dr. Jason Rothbart, for easing my family through an unexpectedly hasty transition to California living.

Julie MacIntosh
covered the takeover of Anheuser-Busch while working as a correspondent for the
Financial Times
, based in New York. Prior to her work covering mergers and acquisitions for the paper, she wrote for the
Financial Times'
influential Lex column. Julie studied as a Knight-Bagehot Fellow in business journalism at Columbia University and, upon completing the Fellowship and earning a Master of Science in Journalism from Columbia's Graduate School of Journalism, then earned a Master of Business Administration from Columbia's Graduate School of Business. Julie also spent six years as a reporter and correspondent for Reuters, in New York and Chicago. She received her undergraduate degree from the Medill School of Journalism at Northwestern University.

Julie, who was raised in the fruit- and wine-growing region of Traverse City, Michigan, always preferred the vineyards of Napa, Sonoma, and Tuscany to the breweries of St. Louis and Milwaukee, but writing this book instilled in her a new respect for brewers' pride.

A-B.
See
Anheuser-Busch (A-B)

Abercrombie & Kent

Ackman, Bill

Advertisements of A-B

Budweiser as King of Beers

Budweiser blimp

Budweiser “Frogs” campaign

cuts in budget

D'Arcy loses A-B account

distributor conventions

“Know When to Say When” moderation campaign

Louie the Lizard

market share and

overspending on

sports sponsorships

Super Bowl

underage drinkers and

USA Today
Ad Meter polls

“Wassup?!” ad campaign

Aethena Group, The

“Air Bud,”

Akin Gump Strauss Hauer & Feld

Almeida, David

Altria

AmBev:

merger with Interbrew

origins of

American Bankers Association

American Hospital Supply Corp.

American Stock Exchange

Ameritech

Anchor Glass Container Corporation

Anheuser-Busch (A-B):

advertisements (
see
Advertisements of A-B)

beer wars with Miller Brewing