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InBev weighs options for beer merger |
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Financial Times 23-May-2008 By Julie MacIntosh in New York and Neil Hume in London The large Belgian brewer InBev could attempt to force Anheuser-Busch (NYSE: BUD - News) to the bargaining table or strike a deal with SABMiller as it tries to consolidate share of the global beer market, according to people familiar with the company's plans. InBev has long studied the possibility of a merger with Anheuser, the US brewer of Budweiser beer, but has consistently run into opposition from Anheuser's board of directors. As it weighs whether to take a more aggressive stance, InBev is working on a $46bn takeover bid for Anheuser and arranging potential financing for a deal, according to people close to the process. Those people cautioned that InBev's plans were still not crystallised, however, and could change. Shares of Anheuser finished the session more than 7 per cent higher at $56.61 in New York yesterday, their biggest gain in three years. InBev fell €1.56, or 3.1 per cent, to €48.76 in Brussels. Warren Buffett's Berkshire Hathaway is the second-largest shareholder in Anheuser. If the Belgian brewer does proceed with an approach, it could take its offer straight to August Busch IV, the Anheuser chief executive who resisted an informal bid from InBev last October, the people said. If its foray does not convince Anheuser to sit down for friendly talks, InBev may consider a direct appeal to Anheuser's shareholders. To cast its net sufficiently wide, however, InBev is also evaluating a plan B: a tie-up with SABMiller. InBev and SABMiller have been informally discussing a combination, according to a person familiar with the situation. The progression of those talks, however, has been limited by the US Department of Justice's review of SABMiller's deal to merge its US operations with those of Molson Coors. None of the companies could immediately be reached for comment. Molson Coors said this week it expected the venture, which will be named Miller-Coors, to win regulatory approval in the next few weeks. After that point, SABMiller's talks with InBev could progress further. To move its potential offer for Anheuser forward, InBev has worked to arrange a financing package through JPMorgan and Santander, the Financial Times' Alphaville website reported. InBev, which owns the Stella Artois and Beck's beer brands, would gain control of roughly a quarter of the world's beer market if a deal with Anheuser were successful. Companies: Anheuser-Busch Cos Inc ;InBev ;Molson Coors Brewing Co ;SABMiller PLC ;Scottish & Newcastle PLC ;Anheuser-Busch Cos Inc ;Ticker Symbols: be:INB; uk:SAB; uk:SCTN; us:BUD; us:TAP; NYSE:BUD; Industries: Breweries; Subjects: Company News; Market Share; Marketing; Mergers & Acquisitions; Countries: Belgium; FT.com Copyright The Financial Times Ltd. All rights reserved. |
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