Critics of the Bud Buyout Are Frothing

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companies in a variety of industries are likely to remain a bargain for years to come. Foreign direct investment in the U.S. has boomed in the past decade, from $105 billion in 1997 to $237 billion last year.

"Ninety-eight percent of that is under the radar screen in terms of any political tension," says professor Jeffrey Garten, an expert in international trade and finances at Yale School of Management.

In fact, nationalism usually becomes a factor in acquisitions only when tension already exists for an acquirer. The Mitsubishi Estate's decision to buy Rockefeller Center in 1989 caused concerns because the deal came amid strong U.S. concerns about rising Japanese dominance in key industries such as semiconductors. China's CNOOC (CEO) dropped its bid for Unocal (CVX) in 2005 after opponents raised questions about that country's increasingly competitive stance in defense and energy. Two years ago, congressional opposition kicked up to help stop a company owned by the government of Dubai from taking control of six American ports. Before September 11 and the concerns it generated about port security, it's hard to imagine such a deal getting so much attention.

Uncle Sam's Hands Are Tied

In any case, the U.S. government has a limited role in approving or denying sales of American companies. The Treasury Dept.'s Committee on Foreign Investment can block a sale if it raises security concerns—hardly a factor, one imagines, in beer. Some sales fall under the jurisdiction of American regulatory bodies such as the Federal Communications Commission. But politicians also can get involved by leading public relations campaigns against the foreign companies, putting pressure on company directors and foreign governments.

If the offering price is high enough, shareholders may sweep such objections aside. Busch family members, led by CEO August Busch IV, have indicated their opposition to the sale, but with only 4% of the stock they may not have the clout to block it.

"Anheuser-Busch is an American icon, but if the price is good, it seems to make a lot of strategic sense," Garten said. "The government has no reason to interfere."

Blunt, the Missouri governor, even acknowledged in his statement that "there is no immediate tool available at the state level to stop it." Should the board approve the sale—still a very big if—Budweiser will taste the same, and Americans will probably keep right on drinking it.

Editor's Note: The original version of this story misstated the figures for foreign direct investment in the U.S.

Salzman is an intern at BusinessWeek.