Anheuser-Busch

InBev takes A-B acquisition bid to Court

InBev is taking another stab at a takeover of Anheuser-Busch, filing a lawsuit in a Delaware court to remove the decision from A-B's board of directors, the Brussels-based brewer said yesterday.

The lawsuit seeks confirmation from the court that A-B shareholders have the right to remove (without cause) all 13 directors, who haven't yet responded to InBev's $46.3 billion acquisition bid.

InBev released a statement that said: "Under the charter of Anheuser-Busch and as a matter of Delaware law, it is clear that the eight directors elected after 2006 are subject to removal without cause through the written consent procedure.

The filing seeks to confirm that, as InBev strongly believes, the [five] directors elected in 2006 are also now subject to removal through that same mechanism."

Last week, InBev's CEO Carlos Brito sent a letter to August Busch IV, A-B's president and CEO, saying that InBev's offer of $65 cash per share for all of A-B's outstanding common stock should be considered before proceeding with any alternative transaction. In his letter, Brito alluded to reports that A-B may be pursuing a merger with Mexican brewer Grupo Modelo.

As the matter currently stands, InBev said it's committed to its proposed bid. Some reports have said A-B, St. Louis, will decline InBev's offer as early as this week.

A-B did not respond to inquiries.

(Published by Adweek - june 27, 2008)