Anheuser-Busch expected to OK buyout offer ST. LOUIS — After weeks of public bickering, Anheuser-Busch Cos. Inc.’s board is likely to accept a sweetened buyout offer from the Belgian-based brewer InBev SA as early as this weekend, a published report said. The Wall Street Journal reported Friday that InBev has boosted its takeover offer for the St. Louisbased maker of Budweiser, Bud Light and other beers by $5 a share to $70. It said one person it did not identify by name said the Anheuser-Busch board is likely to accept the offer this weekend. An earlier New York Times report, also citing unnamed sources said talks have become friendly The Times also said Friday that a person close to the talks said Inbev had raised its offer to $70 a share. It said an announcement of a deal could come as early as Monday. A deal would be a stunning turnaround from the often heated rhetoric between the two companies over the past several days. Anheuser-Busch “does not confirm, deny or speculate on rumors of potential investments, acquisitions, mergers, new business partnerships or other transactions,” said W. Randolph Baker, the company’s vice president and chief financial officer. InBev offered no immediate comment. Anheuser-Busch shares rose $5.29, or 8.6 percent, to close at $66.50 after rising to a 52-week high of $66.55 during the session. News of the potential deal hit hard in St. Louis, where many — perhaps most — bars and restaurants prominently display Budweiser and Bud Light signs. Many sell Anheuser-Busch products exclusively.
InBev agrees to buy Anheuser for $50 billion By Jessica Hall and Martinne Geller
U.S. brewer Anheuser-Busch Cos Inc (BUD.N) agreed to a $50 billion takeover by Belgium-based InBev NV (INTB.BR), a source familiar with the situation said on Sunday, creating the world's largest beer maker.
InBev, the maker of Stella Artois, and Budweiser-brewer Anheuser were not immediately available to comment.
The combined company will be called Anheuser-Busch InBev, said the sources, who agreed to speak on condition of anonymity. Anheuser will get seats on the new company's board, the sources said, but it was not immediately clear how many.
Adding another dimension to any deal was Mexico's No. 1 brewer Grupo Modelo (GMODELOC.MX), which is 50 percent owned by Anheuser. The maker of Corona beer, which has the right to choose its partner, has not yet approved InBev for that role and the two brewers remain in talks, according to one person familiar with the situation.
Modelo declined to comment.
The deal brings an amicable resolution to a month-long saga that was becoming increasingly hostile as the two companies sued each other and InBev set the stage to try to replace Anheuser's board of directors.
InBev had proposed its own slate of nominees for the board that included Adolphus Busch IV, an uncle of the current chief executive of Anheuser-Busch.
InBev lured Anheuser to the bargaining table last week by raising its offer to $70 per share from $65 per share, a 27 percent premium over Anheuser's record-high stock price in October 2002.
Shares of InBev and Anheuser surged on Friday as news of the higher offer and the negotiations emerged. Anheuser closed up 8.6 percent at $66.50, and InBev closed up more than 7 percent.
Sources had said that the two companies and their advisers had talked in New York over the weekend, working through details such as the name for the combined company, roles for Anheuser's executives and the structure of the board. The breakup fees if the deal collapses also were discussed over the weekend, the sources said.
InBev had tried to soothe some of Anheuser's concerns last month, saying it would keep Anheuser's St. Louis home as the headquarters for the North American region. Anheuser's main Budweiser beer would also become the new company's "flagship brand."
Last week, the director of the Brewery and Soft Drink Workers Conference of the International Brotherhood of Teamsters asked to meet with InBev Chairman Peter Harf and InBev Chief Executive Carlos Brito, according to a letter posted on the union's Web site http://www.budwatch.com.
Led by Chief Executive Carlos Brito, InBev is known for ruthless cost-cutting.
The union, which represents workers at all 12 of Anheuser's U.S. breweries, asked for the meeting to discuss the initial offer so it could "fulfill our responsibilities to advise and protect our members."
It was unclear if InBev and the union met.
A takeover of iconic U.S. company Anheuser has sparked an outcry from some politicians, including Democratic presidential candidate Barack Obama.
Analysts have said that Modelo is likely to embrace InBev's bid for Anheuser and hopes the Belgian brewer proves to be a more dynamic and innovative partner than the biggest U.S. brewer.
Anheuser also owns 27 percent of China's Tsingtao Brewery Co Ltd (600600.SS).
While Anheuser controls nearly half the U.S. market with brands like Budweiser, Bud Light and Michelob, InBev has strong positions in Western Europe and Latin America and is growing in Eastern Europe and Asia.
InBev, which was formed by the 2004 merger of Belgium's Interbrew with Brazil's AmBev, is based in Belgium and run by a mostly-Brazilian management team.
What I would do if I owned stock in Anheuser-Busch (or if I was the person running my 401K is sell off the stock in it's entirety, at the price being offered from INBEV, then look at buying some INBEV stock in a couple weeks).
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A takeover of iconic U.S. company Anheuser has sparked an outcry from some politicians, including Democratic presidential candidate Barack Obama.
His only outcry would be that it's taking union jobs away. Otherwise, he WANTS to give people from foreign countries jobs.
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