Bud rebuffs Stella proposal

Budweiser beer brewer Anheuser-Busch has rejected the $46 billion takeover proposal made by rival InBev two weeks ago, saying the suggested deal was financially inadequate.  ┬á On June 11th the Belgian-Brazilian brewer InBev, best known for its Stella Artois brand, made an unsolicited, non-binding proposal to acquire all outstanding shares of Anheuser-Busch for $65 per share. ┬á┬á In yesterdayÔÇÖs response Patrick Stokes, chairman of the board, said, ÔÇ£InBevÔÇÖs proposal significantly undervalues the unique assets and prospects of Anheuser-Busch.┬á┬á ÔÇ£The proposed price does not reflect the strength of Anheuser-BuschÔÇÖs global, iconic brands Bud Light and Budweiser, the top two selling beer brands in the world, with Budweiser selling in more than 80 countries today. The proposal also undervalues the earnings growth actions that the company had already planned, which have significant potential for shareholder value creation; the companyÔÇÖs market position in the United States, the most-profitable beer market in the world; and the high value of its existing strategic investments.ÔÇØ ┬á┬á Anheuser-Busch communicated its decision in a letter sent from president and chief executive officer August A. Busch IV, to Carlos Brito, chief executive officer of InBev.┬á┬á The letter explains that Anheuser-Busch considers its shareholders will be better served if it follows its strategic growth plan. ÔÇ£We are convinced that pursuing our program will enable Anheuser-Busch shareholders, rather than InBev shareholders, to realize the inherent value of Anheuser-Busch.ÔÇØ┬á┬á The company has not ruled out acceptance of a more favorable offer, however. "While Anheuser-Busch pursues its plan, its board will continue to consider any strategic alternative that would be in the best interests of Anheuser-Busch shareholders. The board is open to consider any proposal that would provide full and certain value to Anheuser-Busch shareholders,ÔÇØ the letter said.┬á┬á A deal between the two would create the worldÔÇÖs largest beer company. Anheuser brands account for almost half of all US beer sales.┬á┬á Read the Anheuser-Busch response and the full text of August A. BuschÔÇÖs letter here.  ┬á┬á*┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *