UPDATE: Societe Generale Downgrades Anheuser-Busch InBev to Hold on Deal Block
Societe Generale downgraded Anheuser-Busch InBev (NYSE: BUD) from Buy to Hold.
Societe Generale commented, “The US Department of Justice (DOJ) has blocked ABI's acquisition of Modelo, on the grounds that the deal would be anti-competitive in the US. … The legal proceedings could take many months and will overhang the share price. Our forecasts assume that the deal completes as originally envisaged, but 9 months later, on January 1st 2014, and we have removed the impact from our 2013 forecast, lowering EPS by 7%. We now expect the shares to trade in line with the sector average P/E of 17.6x calendar 2013.”
Anheuser-Busch InBev closed at $88.60 on Thursday.
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