InBev A-B Merger Resurfaces
May 23, 2008 - InBev, the brewing giant created through the merger of Interbrew and AmBev, is working on a $46 billion takeover approach for Anheuser-Busch, according to a report in the London Financial Times.
If the deal were to happen, it would create the fifth largest consumer products group in the world.
A direct approach to Anheuser chief executive August Busch IV is being planned, although expecting a cool reception, the InBev team is preparing to send a follow up letter to the entire board, and detailing terms that are expected to be pitched at $65 a share. If A-B refuses to open up talks, InBev is considering a public appeal direct to the target's shareholders.
August Busch IV has stated recently that a merger with another large entity would never happen "on his watch."
But InBev's advisers believe Mr Busch would now succumb to shareholder pressure to open merger talks and are banking on the fact that Anheuser's board would feel duty bound to follow due process and formally consider a bid if they received a private offer pitched at a substantial premium.