InBev says Bud, I like you

Belgian brewer offers Anheuser-Busch an unsolicited buyout offer for $65 a share.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Colin Barr, Fortune writer and David Goldman, CNNMoney.com writer

NEW YORK (CNNMoney.com) -- There's a taste for Budweiser even outside this country.

Anheuser-Busch (BUD, Fortune 500) rose 7% in after-hours trading Wednesday after the St. Louis-based brewer said it had received a $46.3 billion unsolicited buyout offer from rival InBev of Belgium.

The $65-a-share bid comes two weeks after the Financial Times reported InBev, brewer of Beck's, Bass and Stella Artois, was weighing a possible offer, driven in part by the strength of the euro against the dollar and the presence of a pro-merger administration in Washington.

Wachovia analyst Jonathan Feeney said an InBev takeover may mean a leaner, meaner Anheuser-Busch.

"[There is] little geographic overlap," said Feeney in a statement. "China is the only shared market with manufacturing assets, aside from one Anheuser-Busch facility in the U.K., which leads us to believe that InBev would focus its efforts on streamlining the U.S. beer giant, a possibility which might not sit well with Anheuser-Busch distributors."

Anheuser said its board "will evaluate the proposal carefully and in the context of all relevant factors, including Anheuser-Busch's long-term strategic plan." The company said it expects the board to make a decision "in due course," though top members of the Busch family that have run the company for generations have said they don't want to sell.

Feeney said that the deal is far from done, as the beer industry is highly regulated, and he believes InBev overvalued Anheuser-Busch's stock by about $15 a share.

Anheuser shares rose $4.15 to $62.50. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
15 execs who make more than their CEOs Sure, corporate chiefs' pay often is eye-poppingly high. But at some companies, executives lower down the ladder quietly out-earned their CEO bosses. More
Novelty gifts for people with money to burn For those who've got the cash, these holiday gifts can really make a statement. More
The best stocks of 2014 This year has been very solid for stocks, but these 6 were the best of the S&P 500. More


Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.