Commentary on the Cos-Montelena deal
It’s not the deal in itself that’s so interesting (although it is) but the context in which it occurs. Budweiser is about to get bought by a Belgian company. The Swiss drug company, Roche, this morning tendered a $43.7 billion offer to take over Genentech, the first truly great biotech company that’s right here in the Bay Area. With the dollar tanking and the stock market going down, foreign firms are seeing this as a great opportunity to pick ripe fruit off the American apple tree. Not to mix metaphors, but Cos d’Estournal is just the latest happy buyer in the bargain basement that is the U.S.
Personally, I’m glad for the Barretts. Jim, Bo & Co. have worked hard for more than 30 years. They went through some hard times, especially after the alleged TCA hit a few years ago by you-know-who, which costs them untold amounts of money and grief, but they held their heads high and the wines are as good as or better than ever. I don’t know what Bo’s going to do after this vintage — he’s still a young, energetic guy and I can’t see him fishing forever. I wish him well. And, finally, if somebody had to buy Montelena, I’m glad it’s a great Bordeaux chateau, and not some huge conglomerate.
Hey, with the crummy value of our dollar, the US companies and real estate are available for what, 40% off? Crazy not to be buying them up!
Right. So who’s next?