Heat on as Bud suitor InBev seeks to fire board

In a neat twist, the Belgian headquartered brewer has recruited a member of the Busch family to its board, listing him among a "highly qualified slate" of new directors it wants to put directly to Anheuser-Busch shareholders.

Adolphus A Busch IV is described as the founder and chairman of Great Rivers Habitat Alliance, a conservation organisation. He is also uncle of August A Busch IV, current president and chief executive of Anheuser-Busch and half-brother of former chairman and chief executive August Busch III.

Adolphus hit the headlines by revealing a split in the family when he wrote to the Anheuser-Busch board calling on it to start talking to InBev. But his recruitment is a significant coup for the Belgians, who are keen to placate hostile American drinkers and workers.

Today's filing with the Securities and Exchange Commission is InBev's first move to go over the head of the Anheuser-Busch board directly to its shareholders. If cleared by the SEC, as is likely, it means InBev effectively replacing the current hostile board with an independent group of directors who would almost certainly open discussions.

InBev said: "To date, Anheuser-Busch has been unwilling to engage with InBev in a dialogue to achieve a friendly combination. InBev believes it is time to take action to ensure Anheuser-Busch shareholders are provided the opportunity to take action to ensure Anheuser-Busch shareholders are provided the opportunity to have a direct voice in the process and a say in the future direction of the company."

InBev chief executive Carlos Brito said: "Our strong preference remains to enter into a constructive dialogue with Anheuser-Busch to achieve a friendly combination. We believe our firm offer of $65 per share reflects the full and fair value of Anheuser-Busch and is a compelling proposal for shareholders." He also laid into the US brewer's rejection of the bid and its plan to cut costs and buy half a large Mexican brewer. He said: "The Anheuser-Busch newly formulated plan entails significant execution risk and does little to address the fundamental competitive challenges the company faces in an increasingly global industry."

InBev's proposed board includes former Pfizer boss Henry McKinnell, former Pillsbury chief executive John Lilly and Paul Meister, founder of private-equity firm Liberty Lane.