InBev Makes Unsolicited $46B Bid for Maker of Bud

6/12/2008

Anheuser-Busch Cos. received a $46 billion buyout offer late Wednesday, June 11, from Belgian brewer, InBev SA. Shares of Anheuser-Busch hit an all-time high at market open on Thursday. The stock rose $3.83, or 6.6 percent, to $62.18, after touching $62.72 shortly after the opening bell. InBev's offer of $65 per share, an 11.3 premium on the St. Louis company's Wednesday close of $58.35, would create the world's largest beer company. InBev's brands include Beck's and Stella Artois.

"Anheuser-Busch said that its board of directors will evaluate the proposal carefully and in the context of all relevant factors, including Anheuser-Busch's long-term strategic plan," the company says in a statement. "The board will pursue the course of action that is in the best interests of Anheuser-Busch's stockholders." No other comments directly from Anheuser-Busch are being offered at this time.

InBev Chief Executive Carlos Brito says, "We have the highest respect for Anheuser-Busch, its employees and its leadership, who have built the leading brewer in the United States and grown the iconic Budweiser brand. Together, we would draw on the collective expertise of both companies' management and employees."

InBev says the company has "strong support" from a number of financial institutions, including Barclays Capital, Deutsche Bank and JPMorgan. The company would pay for part of the deal by divesting some "noncore assets" along with equity financing.

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