G. Heileman Brewing Co., which was blocked earlier this week by the Justice Department on antitrust grounds from pursuing its attempt to take over Pabst Brewing Co., may yet get a sizable portion of the Milwaukee-based beer maker.
Minneapolis financier Irwin L. Jacobs, who has been dogging Pabst for months and who waged an unsuccessful proxy fight earlier this year to grab control of the brewer, said yesterday he will make a $196.5 million offer to buy Pabst and, if successful, will sell Pabst's East Coast operations to Heileman for $135 million.
The surprise twist in the ongoing consolidation of the beer industry was greeted by silence from Pabst, which has its own plans to merge with Olympia Brewing Co. to form the nation's fourth-largest beer company.
Jacobs owns 16.3 percent of Pabst and opposes the Olympia takeover. Under his complicated offer, a new organization formed by Jacobs would offer $24 a share for at least 3.2 million shares of Pabst--about 39 percent of the company's stock. If the Jacobs group succeeds, it will own more than half of the brewer and will pay $24 a share for the remaining stock.
Jacobs then would sell Pabst's breweries in New Jersey and Georgia to Heileman.