St. Louis Public Radio News
7:31 am
Mon June 16, 2008

InBev warns AB to not complete deal with Grupo Modelo

SAINT LOUIS, MO – Belgian brewer InBev is warning Anheuser-Busch to not complete its reported deal with Mexico's Grupo Modelo.

InBev said Sunday that the potential merger could endanger the premium price it is willing to pay for the King of Beers.

InBev chief executive Carlos Brito wrote a letter to August Busch IV, the chief executive officer for Anheuser-Busch. In it, Brito said his company's proposed $46 billion offer was based on Anheuser-Busch's current assets, business and capital structure.

Brito said no other deal could create more value to Anehuser-Busch shareholders than the $65 per share in cash that InBev is offering.

A spokesman for Anehuser-Busch could not be immediately reach for comment yesterday.