China in auto power play
It might not shake up the industry just yet, but China's interest in Volvo and Saab is the start of something big in global autos, writes columnist Wei Gu. Commentary
Anheuser/InBev has $1.25 bln breakup fee: filing
NEW YORK (Reuters) - Anheuser-Busch Cos Inc (BUD.N) said on Wednesday that its $52 billion deal to be taken over by InBev NV INTB.BR carries a breakup fee of $1.25 billion.
The breakup fee amounts to about 2.4 percent of the value of the deal, which is within normal parameters for a breakup fee.
According to a regulatory filing, either side would have to pay the breakup fee if it was responsible for the deal falling through. An example is if InBev shareholders did not approve the takeover.
But InBev's controlling shareholder, which controls about 63 percent of its outstanding shares, agreed to vote in favor of the deal, Anheuser said.
The maker of Budweiser and Michelob also said it has established an employee retention program that will provide integration bonuses and severance benefits to about 360 key Anheuser employees who stay with the company through the normal payment date of 2009 bonuses. An employee who is involuntarily or constructively terminated after the closing will be eligible to receive a pro-rata payment.
About 60 of those employees will be eligible for an additional 2008 bonus.
(Reporting by Martinne Geller and Jessica Hall; Editing by Gary Hill and Dave Zimmerman)
