Belgian Brewer InBev SA is unwavering from its intention of taking over Anheuser-Busch, which turned down InBev's offer last week, saying the $65-a-share offer undervalued the group and its prospects.
However, InBev insists the offer embodies a 35 percent premium over the share price before the bid news impinged on it and is 18 percent above the share's all-time high, set in October 2002. Carlos Brito, CEO of InBev maintained that the offer was "full and fair" and gave shareholders abrupt certainty as stock markets plunge.
The brewer urged Anheuser-Busch shareholders to challenge the U.S. beer company's denunciation of its $46 billion takeover bid. It also claims to have arranged finance for the deal.
"InBev's strong preference is to enter into a constructive dialogue to achieve a friendly combination that comprehensively addresses the interests of all constituents," said the maker of Stella Artois, Beck's and Brahma.
"At the same time, InBev remains committed to the combination and will pursue all available avenues that would allow Anheuser-Busch shareholders a direct voice in the process."
Anheuser-Busch, the brewer of Budweiser and Michelob discarded InBev's proffer and commenced a plan to cut $1 billion in costs and raise earnings, so as to win its investors support, making them believe that InBev's $46.3 billion offer was too short.
Key members of the Busch family who run, but do not control the St. Louis Company, strongly combat InBev’s takeover attempt, which was launched in June. Besides, Missouri's governor and both its U.S. senators have openly admitted that they do not want to see the deal to be through, arguing it could lead to job losses there.
Analysts believe that InBev would have to lift up its offer to at least $70 per share to convince Anheuser-Busch to negotiate. Also, in case a friendly approach doesn’t help, the Belgian brewer might go hostile if necessary.
If successful, the merger would create by far the world's largest brewer, with coalescing of a set of strong brands and a large global footprint.
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