Budweiser Could go to Belgium
ST. LOUIS -- In what industry insiders are calling an about face, Anheuser-Busch Cos. Inc. (A-B) entered into a spirited discussion to sell itself to InBev, the Belgium brewer that has thrown multiple offers at the company including lawsuits in hopes of striking a deal.
While no official statement has been released, people close to both companies said Friday that a "friendly deal" is the works. This development is a far cry from the past six weeks, which had InBev's Chief Executive Carlos Brito writing three consecutive, unanswered letters to the A-B. Recently, Brito escalated InBev's pursuit by seeking legal action to overturn sitting A-B board members.
Despite Chief Marketing Officer Dave Peacock announcement last week that the St. Louis-based brewer would raise prices to 85 percent of its beer volume in September and October as part of a new strategy to increase shareholder profits, people close to the negotiations table said that while talks might still fail, InBev's initial offer of $65 per share is now being considered.
While the original offer stood at $46.3 million, sources close to the company said InBev might go higher. This purported possibility might be in reaction to August A. Busch IV, A-B's chief executive, whose only official response to the offer was stating it was too low.
Among those taking interest in the meeting are A-B shareholders, including one of its largest, Warren Buffet, who has not publicly stated his position. If a deal is reached, it will create the world's largest brewer which would combine products such as Budweiser Stella Artois, Beck's and Bass.
While no official statement has been released, people close to both companies said Friday that a "friendly deal" is the works. This development is a far cry from the past six weeks, which had InBev's Chief Executive Carlos Brito writing three consecutive, unanswered letters to the A-B. Recently, Brito escalated InBev's pursuit by seeking legal action to overturn sitting A-B board members.
Despite Chief Marketing Officer Dave Peacock announcement last week that the St. Louis-based brewer would raise prices to 85 percent of its beer volume in September and October as part of a new strategy to increase shareholder profits, people close to the negotiations table said that while talks might still fail, InBev's initial offer of $65 per share is now being considered.
While the original offer stood at $46.3 million, sources close to the company said InBev might go higher. This purported possibility might be in reaction to August A. Busch IV, A-B's chief executive, whose only official response to the offer was stating it was too low.
Among those taking interest in the meeting are A-B shareholders, including one of its largest, Warren Buffet, who has not publicly stated his position. If a deal is reached, it will create the world's largest brewer which would combine products such as Budweiser Stella Artois, Beck's and Bass.