Punch Card Capital Issues Letter to Quinsa's Board

GOTHA, Fla.--(BUSINESS WIRE)--February 09, 2007
Punch Card Capital today released the text of a letter to Quilmes
Industrial (Quinsa), S.A. (NYSE:LQU) regarding the tender offer from
AmBev (NYSE:ABV). 
Dear Members of the Board: 
As you know, Punch Card Capital has been a shareholder of Quinsa
for two and a half years. It is the company's largest independent
shareholder and one of the main parties affected by AmBev's tender
offer. Despite this, the Board has not been receptive to invitations
to privately discuss the offer with me or my advisors. That has led me
to send this letter to publicly state my position on the offer. 
Firstly, it is unconscionable for the Board to render an opinion
on the offer without forming an independent committee to evaluate the
offer. An independent committee is absolutely necessary in this case,
as a majority of Quinsa's directors are related to AmBev either as
employees or directors. The Board's failure to appoint an independent
committee of directors to evaluate and negotiate the offer is both
baffling and negligent. Shareholders expect better corporate
governance from a company that is a member of the InBev (Euronext:INB)
group. 
Secondly, the Board should have selected a financial advisor other
than Citigroup Global Markets. Citigroup is one of AmBev's regular
financial advisors, having provided AmBev with investment banking
services on at least six different occasions in the last several
years. Citigroup is the firm that advised AmBev on the April 2006
Quinsa transaction and supplied the subsequent valuation report. While
I am sure that Citigroup has tried to provide unbiased advice to the
Board, they are hampered by their predisposition to not upset the flow
of future engagements from AmBev. In order to avoid the appearance of
impropriety, the Board should select another financial advisor to
evaluate AmBev's offer. 
Lastly, the Board should ensure that minority shareholders have
all of the information that AmBev has at hand to calculate a fair
share price. Results for the fourth quarter and full year 2006 should
be made available before the expiration of the tender offer. Also, the
Board should provide shareholders with the estimated cost savings that
will result from the integration with AmBev. Credit Suisse reported in
a note on October 3, 2006 that Mr. Joao Castro Neves discussed several
areas of synergies yet to be captured, including shared services,
procurement and ZBB implementation. These synergies will have a
meaningful impact on the shares' fair value, and yet they were
neglected in your analysis. 
Because of the problems stated above, I reject the Board's
recommendation to tender into the current offer. Punch Card Capital
accounts for over 1.75 million Class B shares (including Class B
shares held as ADS). I remain interested in discussing with the Board
the determination and negotiation of a proper offer from AmBev. If a
committee of your independent members would like to follow up, please
feel free to contact me. 
Regards, 
Norbert Lou 
Punch Card Capital 
CONTACT:
Punch Card Capital
Norbert Lou, 212-319-5413
 
 
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