InBev attempts to oust Anheuser-Busch board

By Steve Goldstein, MarketWatch
Last update: 4:20 a.m. EDT July 7, 2008
LONDON (MarketWatch) - Belgian brewer InBev on Monday announced its latest move in its quest to buy Anheuser-Busch, putting up an alternative slate of directors that includes a descendant of the founding Busch family.

InBev said its alternative board includes Adolphus Busch IV, the great-grandson of the Anheuser-Busch founder and the uncle of the current Anheuser-Busch chief executive, August Busch IV.
Other proposed board members include Ronald Dollens, the former CEO of Guidant; James Healey, ex-chief financial officer of Nabisco; former Pfizer Chairman and CEO Henry McKinnell; and Paul Meister, the CEO and co-founder of investment firm Liberty Lane Partners.
InBev said it will make the filing to the Securities and Exchange Commission later on Monday.

InBev in early June launched a bid to buy Anheuser-Busch for $65 a share, or roughly $46 billion.
Anheuser-Busch rejected InBev's offer, calling it "financially inadequate," and proposed a rival cost-cutting and price-increase plan.
InBev on Monday maintained that it wants a "friendly" combination with the St. Louis brewer.
"Our strong preference remains to enter into a constructive dialogue with Anheuser-Busch to achieve a friendly combination that comprehensively addresses the interests of all constituents. We believe our firm offer of $65 per share reflects the full and fair value of Anheuser-Busch and is a compelling proposal for shareholders," said CEO Carlos Brito in a statement.
"In comparison, the Anheuser-Busch newly formulated plan entails significant execution risks and does little to address the fundamental competitive challenges the company faces in an increasingly global industry, wherein a competitive brand portfolio, a worldwide distribution network and economies of scale are key drivers of success."
InBev had previously filed suit in Delaware to confirm that Anheuser-Busch shareholders have the ability to remove all 13 members of their board without cause.
InBev said it's clear that shareholders have the ability to remove at least those who were elected after 2006, but it wants to clarify that the five members elected in 2006 can also be removed.
Shares of Anheuser-Busch ended Thursday at $61.67.
In early Belgium trade, InBev shares advanced 1.4%. End of Story
Steve Goldstein is MarketWatch's London bureau chief.