Boston Beer stock dips after Suntory denies acquisition rumors
Shares of Boston Beer Company (SAM) fell sharply on Monday after Japanese beverage company Suntory (7SN.F) denied engaging in acquisition talks with the craft beer maker. Yahoo Finance's Seana Smith and Brad Smith break down the details, providing insights into analysts' outlook on a potential deal.
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This post was written by Angel Smith
Video transcript
Take a look at a trending ticker and that's Boston beer shares are plunging after some Tory denying that it would be making an offer to purchase the beverage giant.
Another company telling Yahoo finance quote, there's no fact that we are in any negotiations with Boston Beer.
And you can see that reflected in the stock price this morning under a bit of pressure.
And remember that this comes after the stock uh shot higher on Friday following the report that was initially reported here from the journal when it comes to analysts reaction.
And what the quick take was Bernstein was out saying that that the deal might actually look good on paper, but a transaction is not devoid of challenges, talking about limited synergies, which I think was one of our first questions here outside some of those one off brands.
When it comes to a twisted tea, they do have limited synergies.
So I think we talk about some of the projections there.
What exactly that could look like is one of the questions here for analysts.
But again, giving back the some of the gains that we saw on Friday on the heels of the fact that they're saying that actually they're not in talks to acquire the company.
Yeah, absolutely.
This is one of the companies we're gonna be watching over the course of this week as well.
You do have some earnings that are gonna be coming out, um, this week from this industry.
And, uh, I think notably Beam Centauri is supposed to be reporting earnings this week as well.
Uh, so that, oh, excuse me, Brown Foreman is reporting earnings.
So, all right, anyway, we'll be tracking the liquor space.