Anheuser-Busch Buyout, Round 1: $65 From InBev

Anheuser-Busch Companies Inc. (NYSE: BUD) came out and confirmed some discussions that were making the rounds today.  The beer giant noted that it has received a unsolicited and non-binding $46 Billion proposal from InBev to acquire all of the outstanding shares of the company with a buyout price of $65.00 per share.  The company said it will evaluate the proposal carefully and "in the context of all relevant factors" including the company’s own long-term strategic plan.  As far as when a decision will be made, that is noted merely as "in due course."

We noted the highly unusual options activity in the stock options that were seen this afternoon about an hour before CNBC’s David Faber broke a story about an unsolicited bid coming soon.

Another US brand may bite the dust as foreign buyers can acquire our top brands at a mere discount because the US Dollar is so weak it should be called the Peso or the Lira.

Our feeling is that $65.00 isn’t going to make the company jump entirely in favor of the deal here.  This friendly offer isn’t likely to stay that way indefinitely, at least that’s how we see it.  Based on the history of mergers and cross border deals, this is probably only ROUND 1 of a boxing match.

Shares closed up 2.1% at $58.35 on the day and shares are up another 7% at $62.75 in after-hours trading.

Jon C. Ogg
June 11, 2008