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Investors pushing to stop Beam Inc sale

In a stunning announcement to American consumers, it was reported that Beam Inc, was being taken over by Suntory Holdings, a Japanese drinks company. Under the terms of the takeover, Beam shareholders will receive $83.50 in cash for each share they own, but not every shareholder is happy about that.

Suntory Holdings to acquire Beam Inc
Photo by Keith Tsuji/Getty Images

According to Bloomberg News, shareholder Todd Miller filed a complaint to the Illinois state court in Chicago against Beam Inc, claiming that the buy-out undervalues the Beam brand, which made over $2.4 billion in 2012.

Miller’s complaint states: “The inadequacy of the proposed consideration is even more evident when one considers the substantial synergies to be enjoyed by Suntory if the proposed acquisition is consummated.”

Miller is seeking a court order to halt the buy-out; he is seeking new terms which would better compensate the shareholders of Beam Inc.

Much in the same way, Carol Chichester who is likewise a Beam investor filed a putative class action lawsuit against Beam Inc with Delaware Chancery Court in a bid to halt the acquisition by Suntory.

“The proposed transaction is the product of a flawed process that resulted in the board’s failure to maximise stockholder value and deprives Beam’s public stockholders of the ability to participate in the company’s long-term prospects,” Chichester’s complaint reads.

The sale of Beam Inc to Suntory Holdings for US$16 billion would make Suntory the world’s third largest drinks company.