Shareholders attempt to stall Beam buyout

Two Beam Inc shareholders are attempting to block the company’s US$16 billion takeover by Suntory, alleging the deal shortchanges investors.

Some Beam shareholders have expressed discontent over the company’s proposed takeover by Suntory

It was announced earlier this week that Japanese drinks group Suntory Holdings is to acquire Beam Inc, whose portfolio includes Maker’s Mark and Courvoisier Cognac, in a US$16bn (£9.7bn) deal which would see it become the third largest drinks company in the world behind Diageo and Pernod Ricard.

Under the terms of the takeover, Beam shareholders will receive US$83.50 in cash for each share they own.

According to Bloomberg News, shareholder Todd Miller filed a complaint against Beam Inc to the Illinois state court in Chicago, claiming that the buy-out undervalues Beam.

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.”

On behalf of Beam investors, Miller is seeking a court order to halt the buy-out unless new terms are introduced to more greatly benefit shareholders.

Similarly, as reported in Law360, another Beam investor, Carol Chichester, filed a putative class action lawsuit against Beam Inc with Delaware Chancery Court in a bid to halt Suntory’s acquisition.

The complaint reads: “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.”

Earlier this week Beam Inc hit back at a US law firm’s investigation into its “potentially unfair” acquisition by Suntory, branding it “baseless” and “without merit”.

A spokesperson for the group said: “The company will vigorously defend against any and all such claims.”