GOLDEN, Colo. -- The Wall Street Journal's Deal Journal blog speculated that a sale could be in the works for Molson Coors Brewing Co.
The Golden, Co., brewer, which has a market cap of $8.1 billion, last week filed an 8-K informing the Securities & Exchange Commission (SEC) that the company has adopted a Change in Control Protection Program that would provide extra rewards for 11 of its executives, including Chief Financial Officer Timothy Wolf, in a number of circumstances, including a sale of the company.
The new plan provides [image-nocss] for benefits including as much as three times the executive's salary and bonus if the company is taken over and the executive is out of a job, the report said.
A buyout could not take place without the approval of the Coors and Molson families, which control more than half of the voting shares through trust agreements, according to the company's latest proxy statement, and that leads Bryan Spillane, an analyst at Banc of America Securities, to conclude that a friendly deal would be more likely than an unsolicited or hostile approach, said blogger Dana Cimilluca.
Deal Journal has no reason to believe Molson Coors is considering putting itself on the block, but new change-of-control provisions often set off alarm bells with investors looking for the next acquisition target, he said.
If Molson Coors were to put itself on the block, the brewer, formed by the 2005 merger of Adolph Coors Co. and Molson Inc., could potentially cash in on the flood of money into private-equity firms, which are hungry to put it to use on acquisitions. Already, a raft of private-equity companies have lined up to participate in the auction of the U.S. drinks business of Cadbury Schweppes, which could fetch around $16 billion, he added.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.