UPDATE 1-Pabst set to be taken over by Metropoulos-RLPC

* Pabst Brewing set to be bought for $250 mln-WSJ

* GE Capital launching $100 mln loan to back deal-sources
(Rewrites first paragraph, adds loan details, NEW YORK

NEW YORK, May 26 (BestGrowthStock) – U.S. beer company Pabst
Brewing Co is set to be taken over by investor C. Dean
Metropoulos, backed by a $100 million loan, according to
Reuters Loan Pricing Corp.

Metropoulos, once the joint owner of brands such as Duncan
Hines baking mixes, Vlasic pickles and Swanson frozen dinners
is buying the owner of Pabst Blue Ribbon beer from the
California-based charitable foundation that owns it.

The deal will be financed with a $100 million loan from GE
Capital (GE.N: ), which is launching on Wednesday, sources
familiar with the matter told RLPC. According to the Wall
Street Journal, the total purchase price is $250 million.

Metropoulos and Pabst were not available to comment.

Pabst Blue Ribbon is manufactured under contract by
MillerCoors, the U.S. joint venture of Molson Coors Brewing Co
(TAP.N: ) and SABMiller (SAB.L: ).

Despite an anemic U.S. beer market that has been pressured
by the economic downturn and intensifying competition from wine
and spirits companies, the low-cost Pabst Blue Ribbon brand has
been rediscovered by a generation of thrifty, urban drinkers.

“It’s a cult beer here in Williamsburg,” said a manager at
the Turkey’s Nest Tavern in a Brooklyn, N.Y., neighborhood.
“It’s a cheap, no-frills beer…they like it around here.”

The manager, who only gave his name as Steve, said it sells
cans of Pabst for $2 while most other beers in its Tavern are
$3.50 and up.

Dollar sales of Pabst Blue Ribbon in food, drug and other
retail outlets rose 33 percent to about $172.7 million in the
52 weeks ending April 18, the Wall Street Journal said, citing
data from market research firm SymphonyIRI Group.

Pabst is owned by the Kalmanovitz Charitable Foundation in
an arrangement that dates to shortly after the 1994 death of
the widow of Pabst owner Paul Kalmanovitz. The IRS told the
charity that it cannot own a for-profit business, with a
deadline of 2010, according to Beer Business Daily.

The foundation listed its total assets as $62.3 million in
its tax return for the year ending June 30, 2008.

Pabst Blue Ribbon was first brewed in 1848 by Jacob Best.
As of 1872, it was the second largest U.S. brewer, according to
the Pabst web site. From 1919 to 1933, the era of Prohibition
in the United States, Pabst focused on making cheese, a
business that was eventually bought by Kraft Foods Inc (KFT.N: ),
the website said.

Investing Research

(Reporting by Martinne Geller in New York, Diane Bartz in
Washington and Sakthi Prasad in Bangalore; Additional reporting
by Smita Madhur)
(Editing by Jon Loades-Carter and Carol Bishopric)

UPDATE 1-Pabst set to be taken over by Metropoulos-RLPC