InBev plans to sack Anheuser Busch board

07-07-2008

InBev plans to sack Anheuser Busch board
InBev plans to sack the entire board of Budweiser maker Anheuser Busch, replacing it with its own slate – family members of the Busch dynasty included.

Belgian brewer InBev wants to acquire Anheuser Busch and has offered $65 per share in cash for the company.

Although the board, headed by chief executive August Busch IV, is against the £23 billion takeover, InBev has the support of another family member - Adolphus Busch IV – August Busch's uncle and a major stockholder.

InBev proposes to replace the current board with its own members, including Adolphus, who is supporting the bid.

Last month, he wrote a letter to Stella Artois maker InBev. Adolphus said after hearing rumours of an offer, he had thought a bid would present a very difficult choice.

He wrote: "As I reflected on the recent changes in the global beer business, the performance of Anheuser-Busch's share price over the last decade and the terms of the proposal being made to us by InBev, I realized that it is really not a choice at all.

"We can achieve value for our shareholders and preserve the legacy that has been created by the Busch family."

Adolphus is a well-known environmentalist and the great-grandson of the founder of Anheuser-Busch. He is the uncle of August Busch IV and the half-brother of August Busch III, the former chairman, president and chief executive officer and current director of Anheuser-Busch.

Anheuser Busch has accused InBev of trying to take advantage of the company while the dollar is weak and said the proposal does not represent good value for Anheuser Busch shareholders.

Chief executive of InBev Carlos Brito said: "We believe our firm offer of $65 per share reflects the full and fair value of Anheuser-Busch and is a compelling proposal for shareholders.

"The proposal is backed by fully committed financing and provides immediate certainty of value in a weakened stock market environment."

Among others, InBev's proposed slate of director nominees includes Ernest Mario, the former chief executive officer of Glaxo Holdings, Henry McKinnell, the former chairman and chief executive officer of Pfizer and William Vinson, the former vice president and chief counsel of the Lockheed Martin Corporation.

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