Anheuser-Busch buyout rumors persist; credit costs soar

The cost of credit protection for Anheuser-Busch Cos. Inc. nearly doubled Tuesday on a report that the maker of Budweiser beer could be bought out.

The cost of protecting $10 million of Anheuser-Busch’s bonds for five years rose to $24,000 a year from $13,000 a year earlier this morning.

Meanwhile, the St. Louis-based company’s shares climbed 99 cents, or 2.1 percent to close at $47.98 on the New York Stock Exchange.

The Times of London reported that financier Eddie Lampert, who’s known for having turned around the once-bankrupt Kmart, has his sights on the beer company. Lampert’s ESL Investments could be launching a $56-per-share bid, valuing the company at $44 billion, the paper said.

“The Procter & Gamble Co.’s absorption of Gillette Co. is nearly complete and puts the maker of Crest toothpaste, Tide detergent and other consumer products in strong position for long-term sales and profit growth, its chief executive told shareholders Tuesday.

“The merger is without doubt one of the biggest, most important things we’ve ever done,” A.G. Lafley, chairman, president and CEO, said at the company’s annual meeting. “I remain absolutely confident Gillette and P&G are far stronger together than either could have been alone.”

The $57 billion acquisition of the razor- and battery-maker, which took effect one year ago this month, brought five brands with more than $1 billion in annual sales. P&G now has 22 billion-dollar brands that account for two-thirds of total sales, Lafley said.

“A federal court Tuesday set trial in November for three people charged with conspiring to steal trade secrets from The Coca-Cola Co. and trying to sell the material to rival PepsiCo Inc.

The jury trial before U.S. District Judge J. Owen Forrester will be called during a two-week period starting Nov. 13, according to a notice signed by a courtroom deputy clerk. There are two other cases on the calendar before Forrester for that period, and the notice indicates the Coca-Cola case will be tried third.

The trial involving the defendants in the Coca-Cola case is expected to last seven days, the notice says.

Joya Williams, Ibrahim Dimson and Edmund Duhaney were indicted July 11 on a federal conspiracy charge that accuses them of stealing new product samples and confidential documents from Atlanta-based Coca-Cola and trying to sell them to Purchase, N.Y.-based Pepsi.