ANHEUSER-BUSCH REJECTS INBEV
[BIZ: St. Louis Mo, June 26] “InBev’s proposal significantly undervalues the unique assets and prospects of Anheuser Busch,” said Patrick Stokes, chairman of the board for the company. “The proposed price does not reflect the strength of Anheuser-Busch’s 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 company’s market position in the United States, the most-profitable beer market in the world; and the high value of its existing strategic investments.” The board thoroughly studied the proposal with independent financial and legal advisers on multiple occasions during the two-week period since the proposal was made, and the board’s independent directors also met alone to fully examine its merits. The board communicated its decision in a letter sent from August A. Busch IV, president and chief executive officer of Anheuser-Busch to Carlos Brito, chief executive officer of InBev. Full text of the letter follows:
Anheuser-Busch Cos. Inc., a leading global brewer, has announced that its board of directors has unanimously determined that the unsolicited, non-binding proposal by InBev (with a major base in Jupille) to acquire all outstanding shares of Anheuser-Busch for USD 65 per share is financially inadequate and not in the best interests of Anheuser Busch shareholders.
“The InBev proposal fails to be competitive with alternative plans the company has developed in recent months to generate significant top-line and bottom-line growth, which will increase value for the company’s shareholders,” said Douglas A. Warner III, the board’s lead independent director. “The board will continue to consider all opportunities that build shareholder value.”
http://www.anheuser-busch.com/Press/ABRejectsOffer.html