“This Bud’s NOT for you!”: Anheuser-Busch rejects $46.3 bln InBev offer

“This Bud’s NOT for you!”: Anheuser-Busch rejects $46.3 bln InBev offer


“Financially inadequate, not in best interests of shareholders”

Anheuser-Busch Cos. Inc. (NYSE: BUD), a leading global brewer, announced that its board of directors has unanimously determined that the unsolicited, non-binding proposal by InBev (Euronext: INB), the maker of Stella Artois and Beck's, to acquire all outstanding shares of Anheuser-Busch for $65 per share is “financially inadequate and not in the best interests of Anheuser-Busch shareholders.”

InBev NV's unsolicited $46.3 bln takeover offer, would have made this by far the biggest brewer and distributor in the world.


"InBev's proposal significantly undervalues the unique assets and prospects of Anheuser-Busch," said Patrick Stokes, chairman of the board.



"The proposed price does not reflect the strength of Anheuser-Busch's global, iconic brands Bud Light and Budweiser, the top two selling beer brands in the world, with Budweiser selling in more than 80 countries today. The proposal also undervalues the earnings growth actions that the company had already planned, which have significant potential for shareholder value creation; the company's market position in the United States, the most-profitable beer market in the world; and the high value of its existing strategic investments."

The board thoroughly studied the proposal with independent financial and legal advisers on multiple occasions during the two-week period since the proposal was made, and the board's independent directors also met alone to fully examine its merits.

"The InBev proposal fails to be competitive with alternative plans the company has developed in recent months to generate significant top-line and bottom-line growth, which will increase value for the company's shareholders," said Douglas A. Warner III, the board's lead independent director.

"The board will continue to consider all opportunities that build shareholder value."

The board communicated its decision in a letter sent from August A. Busch IV, president and chief executive officer of Anheuser-Busch to Carlos Brito, chief executive officer of InBev.

Based in St. Louis, Anheuser-Busch is the leading American brewer, holding a 48.5% share of U.S. beer sales. The company brews the world's largest-selling beers, Budweiser and Bud Light. Anheuser-Busch also owns a 50% share in Grupo Modelo, Mexico's leading brewer, and a 27% share in China brewer Tsingtao, whose namesake beer brand is the country's best-selling premium beer. Anheuser-Busch is also one of the largest theme park operators in the United States, is a major manufacturer of aluminium cans and one of the world's largest recyclers of aluminium cans.

FINANCIAL MIRROR