InBev Cautions Anheuser-Busch Against Pursuing Other Interests

June 16, 2008
Company's pursuit of Mexican beer maker could jeopardize InBev buyout offer.

Belgian brewer InBev sent a letter to Anheuser-Busch Cos. Inc. warning the company that it could lose out on InBev's buyout proposal if it pursues an acquisition of Mexico's Grupo Modelo SA.

InBev, which has offered a reported $46.35 billion to purchase Anheuser-Busch, said its offer is only good for the company's current assets.

"We have read the recent press reports suggesting that you may have approached Grupo Modelo regarding a possible transaction between Anheuser-Busch and Grupo Modelo or affiliated entities. In light of the reports, we believe it is important for you and your board to understand that our proposal to combine with Anheuser-Busch by means of acquiring all Anheuser-Busch outstanding shares for $65 per share in cash is made on the basis of Anheuser- Busch's current assets, business and capital structure," wrote InBev Chief Executive Carlos Brito in a letter dated June 15 to Anheuser-Busch CEO August Busch IV.

According to published reports, Anheuser-Busch has been in merger talks with Grupo Modelo to thwart a takeover attempt by InBev.

InBev sent Anheuser-Busch its buyout proposal on June 11. Anheuser-Busch later acknowledged receiving the InBev offer and said its board of directors is evaluating the proposal and will "pursue the course of action that is in the best interests of Anheuser-Busch's stockholders."

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