Anheuser details staff benefit, pension reductions - memo

By Megan Davies

NEW YORK, June 29 (Reuters) - Anheuser-Busch Cos Inc (BUD.N: Quote, Profile, Research), the brewer trying to fend off a takeover by Belgian rival InBev NV (INTB.BR: Quote, Profile, Research), plans to reduce lump-sum pension payouts to staff and raise employee healthcare contributions as part of a strategic plan, according to an internal memo.

The memo, obtained by Reuters on Sunday and dated Friday morning, describes the changes as "difficult, but necessary". It cited a changing economic picture which has resulted in sharp increases in costs.

"We have considered a number of (the changes) for some time, although we have accelerated our actions to reflect what is happening in the marketplace," the memo read.

The memo was addressed to salaried workers and was from Tim Farrell, vice president of Corporate Human Resources.

Anheuser-Busch, the St Louis, Missouri-based brewer, which brews the popular Budweiser brand, on Thursday rejected a $65-a-share, or $46.3 billion offer from InBev NV, whose brands include Stella Artois and Beck's.

On Friday, Anheuser-Busch laid out a plan to cut $1 billion in costs and improve earnings as it tries to convince investors that the InBev offer is too low.

The program, which Anheuser-Busch calls "Blue Ocean", includes cutting 10 to 15 percent of its 8,600 salaried workforce through early retirement and attrition, speeding up price hikes to cope with rising commodity costs, and setting earnings forecasts that exceed Wall Street's expectations.

The memo said the changes to employee benefits was part of an "expanded Blue Ocean effort" that will enhance profitability.  Continued...