Belgian brewer InBev SA made a $46 billion all-cash offer for Anheuser-Busch Cos. Wednesday. Since then, stock is up
over $3.00 to around $61.50, and the chatter is rising too. So what's next for the great American beer company?
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Reuters suggests that Anheuser-Busch may try to hold out for a higher bid, even closer to $70 a share, suggests the St. Louis Business Journal.
Could white knights step forward for Anheuser-Busch? Diageo plv or Heineken NV of Amsterdam could step forward to bid or partner with Anheuser-Busch to block an InBev takeover, notes the FT's Alphaville. Competing offers could drive up the price for Anheuser-Busch and give the brewer additional alternatives to consider.
However, Anheuser-Busch could always make a potential acquisition more expensive and difficult just by downing the remaining 50% of Grupo Modelo SAB de CV. According to a report released by Bryanne Spillane, Anheuser-Busch's stake in Groupo Modelo is worth $10.6 billion.
If Anheuser-Busch is acquired, InBev could put some of its assets on the block, such as Anheuser's entertainment division, which runs the Seaworld and Busch Gardens theme parks, and its packaging supply business. Lehman Brothers Inc. has valued those businesses together at around $3.8 billion, according to Reuters.
Still, many shareholders are opposed to the deal, as is much of the community in Anheuser-Busch's hometown of St. Louis as noted by Corporate Dealmaker. There is even a petition to stop the potential merger. Plus, Standard & Poor's doesn't seem too thrilled either. The ratings agency announced it may cut its ratings on Anheuser-Busch from an A if it is acquired due to debt financing from the potential deal. - Maria Woehr
See Corporate Dealmaker: InBev-Bud: The view from St. Louis
See Corporate Dealmaker: Budweiser Syndrome and the global imperative
See Corporate Dealmaker: InBev chief Brito on the rationale behind InBev-Anheuser-Busch
See Dealscape: InBev's letter to Anheuser-Busch
See the full story from Dealscape
See Dealscape: Sites oppose rumored InBev-Anheuser deal
See Corporate Dealmaker: Thomas: InBev-Anheuser deal is part of a trend
See Dealscape: Is Buffett behind Anheuser-Bev?
See Corporate Dealmaker: Smith on Anheuser-Busch and InBev: 'It might be good to merge'
See Dealscape: Rabble Babble: InBev, Anheuser-Busch talk is hopping
See Dealscape: Are banks holding up InBev offer?
