InBev Boosts Bid for Bud, Making Buyout Likely

Deal now tops $50 million, and Anheuser is likely to accept
By Nick McMaster,  Newser Staff
Posted Jul 11, 2008 10:55 AM CDT
In this Oct. 25, 2005 file photo, bottled and draught Budweiser beers are shown at Foley's Bar in St. Louis.    (AP Photo/Tom Gannam, file)
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(Newser) – InBev has increased its bid for Anheuser-Busch to $70 a share, the Wall Street Journal reports. Although willing to replace the Budweiser-brewer’s board in a hostile takeover, the $5-per-share boost—bringing the total deal to $50 billion—is a signal that InBev would prefer to keep things friendly. Anheuser will probably accept the new offer, sources told the Journal.

Anheuser had rejected InBev’s $65-per-share offer as “substantially undervaluing” the firm. But the brewer has reason to take a friendly buyout: it would mean InBev could keep top Busch execs in place. The merged company would be the world’s largest brewer, with about 300 beer brands across six continents.