Craft Brew Alliance's Buyout Shows Boston Beer Vastly Overpaid for Dogfish Head
There were a lot of good reasons why Anheuser-Busch InBev (NYSE: BUD) should have bought Craft Brew Alliance (NASDAQ: BREW) back in August. Valuation was undoubtedly the reason why it didn't.
At a required $24.50-per-share price for the craft brewer under the terms of the "qualifying offer" agreement the two had in place, it would have cost the megabrewer around $500 million based upon the number of shares Craft Brew Alliance had outstanding. It was cheaper to pay the $20 million incentive fee required by the agreement for what was admittedly a diminished brand working on a turnaround.
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Source Fool.com
