InBev Remains Committed to $46.3 Billion Anheuser Bid

By Loveday Morris

July 1 (Bloomberg) -- InBev NV, the Belgian brewer trying to buy Anheuser-Busch Cos., repeated that it's committed to its offer of $65 a share and would prefer a friendly takeover.

The bid reflects the ``full and fair'' value of the company, InBev Chief Executive Officer Carlos Brito said in an e-mailed statement today. The Leuven, Belgium-based brewer will pursue ``all available avenues'' to allow Anheuser shareholders to vote directly on the offer.

Anheuser-Busch on June 27 rejected InBev's $46.3 billion takeover offer three hours after the Belgian brewer made its bid hostile and announced plans to fire the St. Louis-based brewer's directors. The U.S. maker of Budweiser beer instead unveiled plans to boost its stock by cutting as much as $1 billion in annual costs and buying back more shares.

``It's a bit of strategic play,'' KBC Securities analyst Wim Hoste said by phone today. ``They want to keep pressure on Anheuser-Busch's board and remind them that they can still go hostile but on the other hand, they indicate that they want friendly talks. A friendly combination isn't going to happen at $65.''

InBev secured at least $40 billion in debt arranged by banks including Banco Santander SA to fund the initial offer. The founding family, who do not own enough stock to block a bid, were split over the first approach. A takeover would unite Budweiser with InBev's Stella Artois, Bass and more than 200 other brands.

``The proposal is backed by fully committed financing, and provides immediate certainty of value in a weakened stock market environment,'' Brito said in the statement.

Hoste, who rates InBev ``accumulate,'' expects the brewer to raise its offer to between $70 and $75 a share, a level which he still sees as an ``acceptable'' price.

InBev fell 8 cents, or 0.2 percent, to 44 euros at 9 a.m. in Brussels trading. Anheuser-Busch closed at $62.12 on the New York Stock Exchange yesterday.

To contact the reporter on this story: Loveday Morris in London at lmorris7@bloomberg.net
Last Updated: July 1, 2008 03:05 EDT