InBev courting Anheuser-Busch

InBev began courting Anheuser-Busch owners and staff last night and its stock rose strongly after it made a $46

InBev began courting Anheuser-Busch owners and staff last night and its stock rose strongly after it made a $46.3 billion bid to add Budweiser to its own Stella Artois and Beck's beers and create the world's largest brewer.

InBev chief executive Carlos Brito said he is aiming for a friendly deal as he sought to reassure managers and staff of the biggest US beermaker and vowed to keep the home of Budweiser, America's "King of Beers," in St Louis.

"Our objective is to reach a friendly agreement with their board ... We think their board will act in the best interests of shareholders," Brito told a conference call with analysts.

He said the cash offer at $65 per Anheuser share was full and fair and would boost InBev earnings in the second full year after a deal, but many analysts said the Belgian brewer may have to pay $70 a share to win over Anheuser shareholders.

Brito said InBev would look at non-core asset sales and although he was unwilling to specify, analysts say these could include Anheuser's SeaWorld and Busch Gardens entertainments division and its packaging supply business, which broker Lehman Brothers has valued together at around $3.8 billion.

InBev said it would finance the deal with a minimum of $40 billion of debt and thus less equity than had been expected.

A deal would bring together InBev with its big operations in Western Europe, Brazil and Canada with Anheuser's businesses in the United States, Mexico and China, and fuse the second- and fourth-largest brewers to overtake world leader SABMiller.

Sources close to the deal said Anheuser's best defence was to stress value and it was expected to reject the first bid. However, with no obvious rival bidders, any increase in the bid price might be limited, they added.