In order to fend off the $46.3 billion takeover bid by InBev SA, Anheuser-Busch is restructuring to contain costs. The company plans to streamline processes and trim as many as 1,290 jobs to create a cost saving over $1 billion within the next two years. During a conference call Friday morning, CEO August Busch IV said the cost reductions will help increase revenues per barrel by more than 4%. Busch also said the company is unlikely to sell its theme parks and packaging businesses.
Busch also explained the reasons behind the rejection to InBev. "The board took InBev's proposal very, very seriously," he said. "The proposal assumes cost reductions that Anheuser-Busch can achieve independently. This is an excellent board, and they ruled that InBev's proposal was inadequate with our expansion internationally and the value of our premiere iconic brand."
Thursday, InBev went to court requesting the removal of the U.S. companies' directors. InBev requested a judgment "to confirm that shareholders acting by written consent may under Delaware law remove without cause all 13 of the present Anheuser-Busch directors," including five elected in 2006. During the conference call Anheuser-Busch said they will "challenge" InBev's claim that Anheuser shareholders can remove all 13 of its board members without cause. InBev's suit was announced prior to Anheuser-Busch's rejection letter.
InBev could always raise its offer. Bloomberg suggests that InBev may raise its offer by $7 billion to $53.5 billion. During the conference call, W. Randolph Baker, vice president and CFO, said that the Ebitda multiples of the bid were low. SABMiller plc, the world's third-largest brewer, paid about 14 times Ebitda for Royal Grolsch NV last year. InBev's offer is only 10 times Ebitda. - Maria Woehr
See Corporate Dealmaker: Would Budweiser make a good global flagship brand?
See Dealscape: Anheuser-Busch rejection letter to InBev
See TheDeal.com: Anheuser-Busch rejects InBev
See TheDeal.com: Bud for InBev at $65 per share?
Is Anheuser-Busch Cos. announcing a restructuring to up the ante? Probably. 
