Budweisier owner rejects InBev proposal as "inadequate"

Published: 23 July, 2008

Budweiser owner Anheuser-Busch has rejected InBev's unsolicited $65-a-share takeover bid as inadequate.

Following three letters of intent from Stella Artois owner InBev over the last two weeks, the Anheuser-Busch CEO August A. Busch IV confirmed his company would be rejecting the offer worth $46bn.

He wrote: "The board unanimously concluded your proposal is inadequate and not in the best interests of Anheuser-Busch shareholders. In reaching this conclusion, the board considered the advice of its independent financial advisers.

"The Anheuser-Busch board believes that your proposed price substantially undervalues Anheuser-Busch, its key assets and its prospects."

Busch added he could see "now could be opportunistic timing for you to make this acquisition, given the weak US dollar and sluggish US stock market," but his shareholders remained the priority.

The letter concluded: "As you say yourself, you dream big. We respect your desires to grow your company. But your growth should not come at the expense of our stockholders."

It is expected that InBev will now pursue a hostile takeover strategy.

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