InBev reiterates offer ahead of Anheuser-Busch's possible transaction with Grupo Modelo

By Lisa Kerner

Charlotte, N.C., June 16 - InBev NV reaffirmed and clarified certain aspects of its proposal to combine with Anheuser-Busch Cos. Inc. on news that Anheuser-Busch approached Grupo Modelo SAB de CV regarding a transaction.

Anheuser-Busch said in a statement released on Monday that it would not confirm, deny, comment on or speculate on rumors.

Instead, the company reiterated that its board of directors is evaluating the InBev proposal carefully and "in the context of all relevant factors, including Anheuser-Busch's long-term strategic plan."

On June 11, InBev proposed acquiring all outstanding common shares of Anheuser-Busch for $65 per share in cash.

InBev, in its June 15 letter to president and chief executive officer August A. Busch IV, noted that its offer is made on the basis of Anheuser-Busch's current assets, business and capital structure. As a result, InBev said it expects Anheuser-Busch to fully explore the InBev offer before proceeding with any alternative transaction.

InBev believes that no alternative transaction would create more value for Anheuser-Busch shareholders than InBev's $65-per-share cash offer.

On June 11, Anheuser-Busch announced its board of directors would evaluate the Leuven, Belgium brewing company's unsolicited, non-binding proposal and would make a determination "in due course."

It was previously reported that as part of its proposal, InBev planned to make St. Louis the headquarters for the North American region and the global home of the flagship Budweiser brand.

In addition, some Anheuser-Busch directors would be asked to join the board of the combined company, and InBev would maintain all of the St. Louis-based brewing company's U.S. breweries.

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