The Deal
Monday, November 23, 
6:19 am

Is the third time a charm for InBev?

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budweiser.jpegInBev SA has sent a third letter to Anheuser-Busch Cos.' board to affirm its $65 a share bid.

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In the letter, which is available in The Wall Street Journal, the Belgium-based beverage company said it has obtained financing for the deal:

To demonstrate our conviction in this combination, we have executed commitment letters for the financing and have paid approximately $50 million in commitment fees to a lending group comprised of Banco Santander, Bank of Tokyo-Mitsubishi, Barclays Capital, BNP Paribas, Deutsche Bank, Fortis, ING Bank, JP Morgan, Mizuho Corporate Bank and Royal Bank of Scotland.

Anheuser-Busch held a board meeting last week, but family members still remain divided over the deal. The family are not the only investors undecided. Shareholder Warren Buffett told Reuters in an interview on that he has not yet taken a position on InBev's takeover bid.

It has been two weeks since InBev approached. Anheuser-Busch and CEO Carlos Brito said in his letter that "time was of the essence." Brito's comment is no throw-away statement as Reuters Dealzone pointed out:

Without putting a definitive walk-away date on the offer, InBev kept its friendly demeanor. But the reminder makes clear that its interest in a cold Bud may not last forever.

However, time may be on Anheuser-Busch's side. Despite Anheuser-Busch's lack of strong takeover defenses, InBev may not have the resolve to go hostile in face of the growing political opposition toward the deal in Missouri and Washington. - Maria Woehr

See The Deal's: InBev financing in place
See Dealscape: Busch family divisions show in light of InBev offer

See Dealscape: SABMiller a target?
See Dealscape: Modelo CEO resigns from Anheuser board
See Delascape: Anheuser-Busch board to meet
See Corporate Dealmaker: Anheuser-Busch buys out partner in India JV
See Dealscape: Mr. Brito goes to Washington
See Dealscape: InBev's campaign to win over Missouri





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