Report: A-B to Reject InBev Bid

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Brew blog

Expected to argue it undervalues A-B, WSJ reports.

Anheuser-Busch is poised to reject InBev’s unsolicited bid for the company — potentially setting the stage for InBev to go hostile, according to a report in the Wall Street Journal.

From the story:

Anheuser-Busch Cos. is prepared to reject InBev NV’s unsolicited $46.35 billion acquisition offer as early as this week, setting the stage for a hostile takeover battle for America’s largest brewer, according to people familiar with the matter.

Anheuser is expected to argue that InBev’s offer undervalues the maker of Budweiser beer and soon will present its own strategic plan. That plan, which is likely to include the sale of noncore assets such as Anheuser’s theme parks, is designed to boost the company’s share price, these people said.

Ultimately, the move isn’t likely to deter InBev, which has put together a carefully crafted battle plan, according to people familiar with the matter. InBev, of Leuven, Belgium, is prepared to take its offer directly to Anheuser shareholders via a tender offer that Anheuser has few defenses to stop, these people said. Many investors have expressed support for the bid, which represents a roughly 30% premium to where Anheuser shares traded before the offer.

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