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November 22, 2008 9:41:49 CST

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Budweiser to Buy Corona to Stave Off Stella?

Posted Jun 13, 08 6:55 CDT in Business 

(Newser) – Anhueser-Busch has approached Mexian brewer Grupo Modelo about a possible merger, the Wall Street Journal reports, in an attempt to thwart an unwanted $46.35 billion takeover bid from Belgium’s InBev NV. Anhueser already owns 50% of Modelo, which is best known for its Corona brand. By buying the other 50%, it hopes to move out of InBev’s price range.

It’s unclear whether Modelo is open to such advances, however. The brewers have made uneasy partners, and Modelo might prefer to take its chances with InBev. There’s also a chance the acquisition wouldn’t stop the bid. “If you are an Anheuser-Busch shareholder, are you willing to give up $65 or higher in your pocket for the risk of an expensive acquisition?” asks one analyst.

Source Wall Street Journal

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In this April 21, 2008 file photo, a Budweiser sign is seen atop one of the buildings at the Anheuser-Busch brewery in St. Louis.   (AP Photo/Jeff Roberson, file)
Various bottled beers are seen in this Monday, May 12, 2008 photo.   (AP Photo/Larry Crowe)
Owner John Schute draws a Budweiser draught on Tuesday, May 27, 2008, at his restaurant, Sage, in St. Louis.   (AP Photo/Tom Gannam)
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mergers and acquisitions • beer • Anheuser-Busch • Budweiser • InBev • Stella Artois • Grupo Modelo


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