Thursday, February 28, 2013

Constellation Brands, Inc.

With Nexen, Inc out of the way… I’m on the look out for the next special situations play. I’ve started building a position in Constellation Brands, Inc. (Ticker: STZ). This company will be the prime beneficiary in Anheuser-Busch InBev’s (Ticker: BUD) acquisition of Grupo Modelo. Anheuser-Busch has agreed to sell control of the Modelo brands such as Corona in the US and a Mexican brewery to Constellation Brands for a very fair (cheap) price. There is a good probability that the DOJ will accept this remedy in order to allow Anheuser-Busch to proceed with its acquisition of Grupo Modelo. This will be a transformational deal for Constellation Brands making it the 3rd largest beer company in the US. I really like this deal for Constellation Brands and should know in mid-March regarding the decision from the DOJ. I can see Constellation Brands easily going to $50+ with the ok from the DOJ.


At March 01, 2013, Anonymous Anonymous said...

How did you come up with a $50 target?

At March 05, 2013, Anonymous Anonymous said...


Is there a favorite free web site that you and anyone else uses to identify previously announced deals and what the current price arbitrage spread may be? A few of my previous favorites have all converted to subscription pay models.



At March 05, 2013, Blogger Money Turtle said...

Here are some of the sites I use to gather some ideas.

At March 06, 2013, Anonymous Anonymous said...


Thank You for the web site links. sinletter was exactly what I was looking for.




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