Anheuser-Busch Takeover Target: Craft Brewers Alliance?
"They ramped-up the spending to build future growth," Peterson said. "I think HOOK's management sees they have two fast-growing beers in Widmer Drifter and Kona Longboard Island Lager, plus many great seasonal beers, and decided to invest money today to build the brand for tomorrow."
Anheuser-Busch own 35.6% of Craft, according to an April 9 filing with the Securities and Exchange Commission. Brothers Kurt and Rob Widmer, founders of Widmer Brothers beer, own a combined 18% of Craft shares.
Craft announced earlier this month that Kona Brewing, a craft brewer based in Hawaii, would become its wholly-owned subsidiary for the purchase price of $13.9 million.
Shares of Craft fell 3.7% to $5.74 at midday, off earlier lows.Do you think Budweiser is developing a taste for Craft Brewers? Take our poll below and see what readers of TheStreet think.
>>See our new stock quote page. Follow Miriam Marcus Reimer on Twitter and become a fan of TheStreet on Facebook. Get more stock ideas and investing advice on our sister site, Stockpickr.com.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV