Should i sell my A B stock of 4003 shares or let it ride with InBev?

Question

i have had the ab stock for about 50 yrs. should i sell or go with inbev? does inbev pay dividends? is there a way to sell and not pay any gain?

Answer 1

sell it.  if you've had the BUD for any significant period of time, then you've probably already made a better return than you were looking for when you bought.

with inbev, you're opening a huge can of worms - the euro, regulatory discrepancies, etc.

really, if you're inbev, the time to make this deal would have been 3 or 4 years ago, so you could have better levered the world cup beer rights in germany, which would have been huge for a euro producer.

Answer 2

AB & Inbev mix will make them the largest producing beer in the world, producing 1/4 of the world's beers. Their stock should sky rocket pretty soon. Inbev bought AB for $70 a share, so expect the value of the stock to up even higher in the coming weeks. At least wait till the merger/acquistion is complete before making any kind of moves.

If you are trying to live off the dividends, then this isn't a problem either. I'm pretty sure your AB stock will remain as they are and the companies will be listed separately. You will still get about the same amount of dividends, maybe more, depending on what Inbev wants.

And no, there's no way to sell and not pay any gain in the U.S. That's the Capital Gains tax. But if a dem gets elected next year, yeah.... you might want to sell in a republican time when the Cap taxes are low.

Answer 3

Take the money and run.  The capital gains tax is set to double in 2009, if the Democrats gain control of lawmaking.  With the Media working the campaign for the Dems, it is difficult to see how an all out tax hike on investors can be averted.