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View Full Version : What if Beam is sold?



T Comp
11-20-2010, 19:43
According to the Wall Street Journal "Fortune's management is open to the idea of breaking up the Deerfield, Ill., company and sees Mr. Ackman's interest as an opportunity to test the market for the different assets, one of the people familiar with the matter said."
http://online.wsj.com/article/SB10001424052748704865704575610873495532704.html

Now talk is starting that Diageo would be the best suitor for any Beam acquisition. http://uk.reuters.com/article/idUKTRE6AG2N720101117

These are of course rumours but my own experience as a battered but still surviving employee of the corporate world is that where there is smoke there is often fire.

If it happens what say you?

ErichPryde
11-20-2010, 20:02
Diageo destroys pretty much everything it touches, so I hope this is incorrect. Beam has just started to come up with some serious competitors.

If every single person on sb got together maybe we could purchase the distillery. Hey, I'd mortgage my house and sell both my cars!

imbibehour
11-21-2010, 16:47
What about breaking up the brands products amongst smaller distillers/producers? that's I suppose a dream and far fetched and not feasible I am guessing.

I hate rumors like this, this does smack of a turnover cause who else wold be able to take over such an operation?

cowdery
11-21-2010, 16:52
Fortune Brands, Beam's parent company, has long been an anachronism in the corporate world, a 1960s-style conglomerate whose parts have little relationship to each other. When they talk about 'breaking up' the company, they're talking about Fortune, not Beam, with the idea that Moen, Beam, and Titlest could return more value to shareholders as separate companies. Obviously anything can happen but I think an IPO for Beam Global as a separate stand-alone company is more likely than an outright acquisition, which would face a lot of regulatory hurdles since the industry is so consolidated as it is. Diageo is the world's largest drinks company, Beam Global is sixth. Beam is also the most profitable part of Fortune so if any part could stand on its own, it's Beam.