Lampert/Anheuser Busch Rumors Insane

Have a flat-lined stock like Gap Stores (GPS) or Home Depot (HD)? Why not start a rumor that Eddie Lampert, Chairman of Sears Holdings and general partner of ESL Investments, a Connecticut based hedge fund, is interested in your stock? That seems to be a recurring idea on Wall Street lately.

The latest rumor sent shares of St. Louis based beer brewer Anheuser Busch (BUD) up 2 percent on Tuesday, on reports that Lampert could launch a $56 per share takeover bid. This has to be one of the silliest rumors I’ve ever heard. At least GPS or HD made a little sense given Lampert’s taste for retailers, even though Home Depot is far too big for an outright acquisition.

How exactly could Lampert pay $44 billion for BUD? And even if he did have the money, why would he do such a thing? Maybe those starting these rumors just want the Warren Buffett/Eddie Lampert comparison to ring true. After all, Berkshire Hathaway (BRKA) has a fairly large position in BUD. Regardless of who is responsible for the rumors, please do not buy BUD shares on hopes of this news materializing. There is no way Lampert buys out Anheuser Busch.

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2 Thoughts on “Lampert/Anheuser Busch Rumors Insane

  1. Hot Market on October 11, 2006 at 4:32 PM said:

    Will you eat a pair of socks if he does lead a charge to buy BUD?

  2. javasoy on October 11, 2006 at 11:57 PM said:

    Buffett has his share of duds. I share at least two recent failures with him. It’s like any other investment style, you hope for a beter than average batting average for a life time, but slumps do happen. BUD was on my buy list but didn’t pull the trigger. Buffett probably like it because it’s an alcohol related company with good FCF and insane ROE. I don’t see what Eddie could’ve seen in BUD that he would fall all over for.. but then again, he is who he is, how he made all his money is far from what I could ever accomplish….

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