DOJ Efforts Against Bud and Modelo Crush Constellation Brands

What is so interesting is that Constellation Brands’ stock was trading right under a year-high. That was then. Shares tanked and were halted by the so-called single-stock circuit breakers, which have been implemented by the New York Stock Exchange as a buffer against any future flash crash scenarios as we have seen in years past.

The drop is currently down 21% to about $31, against a 52-week trading range of $18.50 to $39.65. We previously had noted how Anheuser-Busch InBev S.A./N.V. (NYSE: BUD) was getting to finance this purchase for almost free due to the reception its bond offering had.

Anheuser-Busch InBev S.A./N.V. (NYSE: BUD) is down about 5% at $89.50 on the day, against a 52-week range of $62.59 to $94.49.

This means that the Corona beer business is at risk, and it is obvious that merger-arbitrage funds are getting crushed on this news. It turns out that there is once again no free lunch … nor any free beer.