Anheuser-Busch to reject InBev offer

InBev is prepared to take its bid directly to Anheuser-Busch shareholders through a tender offer, the Wall Street Journal said. InBev has yet to decide whether to pursue such a course, however.

"It would be surprising to think that Brito, with a bone already in his mouth, would take it out," said Pirko, referring to InBev Chief Executive Carlos Brito.

Anheuser-Busch has few takeover defences to thwart a hostile offer, making it feasible for an unwanted suitor to acquire the company.

InBev on Wednesday prodded Anheuser-Busch by saying it remained available to discuss the bid, but stressed that time was "of the essence."

InBev said it had commitment letters for the financing for the deal and has paid $50 million in commitment fees to a 10-bank lending group.

It has been two weeks since the Belgian-Brazilian brewer launched its bid for Anheuser-Busch, but the maker of Budweiser and Michelob has yet to respond.

Analysts have said that if Anheuser puts off negotiations for too long, InBev may just take its offer directly to shareholders in a hostile bid.

That could be bad for Anheuser, analysts have said, since InBev's bid would give shareholders a significant premium that Anheuser would have trouble matching on its own.

The $65-a-share offer, which tops Anheuser's all-time high, is 24 percent higher than the stock's closing price the day before reports of merger talks surfaced, and 35 percent higher than the average share price over the preceding month.  Continued...