Anheuser-Busch may reject $46.3 billion InBev bid

26 June 2008

Mumbai:  Two weeks after Belgian-Brazilian brewer InBev launched a $46.3 billion bid for Anheuser-Busch Cos Inc, the board of the US-based brewer may reject the unsolicited offer as it viewed the $65-per-share offer too low, sources close to the development said.

Instead of accepting InBrew's unsolicited offer, reports say, Anheuser-Busch has plotted its own restructuring plan, that would include the sale of its theme park operations and packaging unit as also layoffs.

Anheuser-Busch, the brewer of Budweiser beer, expects these measures to help it cut $500 million in costs. But it did not say when it planned to start restructuring.

InBev, the maker of Stella Artois and Beck's, however, insists its $46.3 billion takeover offer is ``full and fair.''  The company also said it was open to further discussions, but stressed that time was "of the essence."

InBev said it had already arranged finances with a consortium of 10 banks and has paid $50 million in commitment fees to the group.

A rejection of the bid may force InBev to either raise its offer or take its bid directly to shareholders.