The general manager of Kingsmill has indicated that the Kingsmill Resort will more than likely be sold after InBev completes it's purchase of Anheuser Busch.
The turmoil on Wall Street has some analysts wondering whether InBev can finance the $52 billion takeover of Anheuser-Busch.
Edward Jones analyst Jack Russo lowered his rating of A-B from "Hold" to "Sell," and told investors "we are concerned about InBev's financing package for the BUD merger," according to a Sept. 16 research note. "While we still see it as probable that the deal closes as planned at $70 in an all-cash offer, fragile credit markets increase the risk that financing falls through, gets delayed or gets restructured."
A spokesman for InBev has issued a statement saying, "We continue to move forward in the transaction process and remain on track to close the transaction by the end of the year
Interesting that the United Kingdom's Office of Fair Trading announced on August 28th that it had opened an inquiry into the deal. I haven't seen much press about this .
More then likely, the various businesses of Anheuser Busch will be broken out from one another and sold off individually. For Busch Gardens, attractive buyers would obviously be entertainment and amusement companies. Considerable speculation rests on companies in England or Spain. The front runners are confirmed as Blackstone,Merlin Entertainments, Disney and Parques Reunidos.
Blackstone, which co-owns Merlin alongside Dubai International Capital, is also an investor in Universal Orlando, another of the US's largest theme parks operators. People close to Blackstone say that if it succeeds with an offer for the Anheuser-Busch parks, it could merge them with either Merlin or Universal, in which NBC Universal, the US media company, is a partner.
A Kingsmill purchase is made more complicated because it intertwines a major resort with greater Williamsburg Virginia's first planned community. InBev would probably court developers or real estate management firms.Kingsmill is almost entirely built-out, making management companies the most likely suitors.
Kingsmill has a number of attributes that make it attractive to investors, namely three golf courses, the LPGA tournament, ( Michelob ULTRA) resort condos and the convention space, a strong homeowners association (KCSA), and a community with well established covenants..
On another note
August Busch IV,current CEO of Anheuser Busch will be paid nearly $10.4 million to advise InBev Chief Executive Carlos Brito during InBev's takeover of the Budweiser maker.
The job, effective until 2013, also would pay Busch $120,000 a month to advise InBev on new products, marketing programs and charities, and to meet with retailers, wholesalers and advertisers and attend media events, according to documents filed with the Securities and Exchange Commission.
In exchange, Busch will get an office in St. Louis, administrative support, a personal security detail, complimentary tickets to A-B-sponsored events and insured medical, dental, vision and prescription drug benefits, according to the filing.
He also will be eligible for a gross-up payment estimated at $13.3 million on various changes in control payments and benefits connected to the $52 billion takeover, which is expected to close by the end of the year.
The payments, disclosed in a filing with the US Securities and Exchange Commission, will come on top of the $88.6million in share awards Mr Busch is in line for, as well as a bonus for 2008 of $6 million and a $13.3million fee related to a change of control clause.
His father, ex-Anheuser chief executive August Busch III, will receive about $103 million for his equity holdings.
