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InBev threat to go hostile in bid
01.07.08
Stella Artois brewer InBev today issued a veiled threat to go hostile with its $46 billion (£23 billon) takeover bid for Budweiser maker Anheuser-Busch (A-B).
The Belgium-based predator issued a statement declaring that it would go directly to shareholders with its $65-a-share tilt if the board refused to talk.
Members of the founding Busch family are split over whether to talk to InBev, but the directors last week rejected the offer.
Many analysts reckon InBev will put more cash on the table, but the company said its existing price was "full and fair value" despite the current weakness in US company share prices.
InBev today said: "InBev remains committed to the combination and will pursue all available avenues that would allow A-B shareholders a direct voice in the process."
A-B on Friday said the offer was too low. It pledged to cut $1 billion in costs and improve profits.
InBev today countered that such a plan was risky for investors as it would be difficult to implement.
