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InBev presents formal bid for Anheuser-Busch
Our Bureau
Date of posting: 12-06-08
      InBev, the world’s leading brewer, has presented a formal bid to take over Anheuser-Busch to create a global leader in beer with Budweiser as flagship brand.

      The Belgian beer leader proposes to acquire all outstanding common shares of Anheuser-Busch for $65 per-share in cash, which is a premium of 35% over Anheuser-Busch’s 30-day average share price prior to recent market speculation.

      InBev said that a formal proposal was sent to Anheuser-Busch’s Board of Directors on June 11, 2008 indicating that InBev would like to seek a "friendly combination" of the two companies. The letter highlights that InBev sees complementary strengths of the two companies, which have a limited geographical overlap so far. St. Louis would be made the headquarters for the North American region and the global home of the flagship Budweiser brand. Also, InBev states that a combined company would be renamed to evoke the heritage of your key brands, and a number of Anheuser-Busch directors would be invited to join the Board of the new company.

      InBev is strong in Europe with brands like “Beck’s” and “Stella Artois”, whereas Anheuser-Busch with “Budweiser” is market leader in the US with 49% market share.

      Anheuser-Busch has already announced that it has received the proposal from InBev and said to deal with the proposal in due course.

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