A-B Board to Weigh InBev Bid

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Brew Blog

Looking at valuation, says the Financial Times.

The Anheuser-Busch board is meeting in person this week for the first time since InBev made its unsolicited, $65-per-share bid for the company last week, reports the Financial Times.

From the story:

The directors will weigh a variety of options for Anheuser, the 150-year-old brewer of Budweiser beer. But in a sign that Anheuser may not unequivocally reject InBev’s advances, insiders say its advisers will focus the board’s attention on the valuation of InBev’s bid. At $65 per Anheuser share, they may argue that the bid is too low for a brand that InBev has called “iconic”.

The offer, which equates to roughly 12 times Anheuser’s 2007 earnings before interest, taxes, depreciation and amortisation, represents a 35 per cent premium to Anheuser’s average share price over the month before the bid announcement. Carlos Brito, InBev’s chief executive, said yesterday that it had offered a “full price”.

The story notes that companies such as Gillette and Wrigley commanded higher valuations — and A-B might point that out.

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