Dominic Walsh and Dan Sabbagh
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InBev’s campaign to buy Anheuser-Busch (AB) gathered pace yesterday after a senior member of the Busch family threw his weight behind the Belgian brewer’s $47 billion (£23.8 billion) bid for the Budweiser maker while Barack Obama said it would be “a shame” if the deal went through.
Adolphus Busch IV, the great grandson of the company’s founder and uncle of August Busch IV, the present chief executive, is among the new directors put forward by InBev in a filing with the US Securities and Exchange Commission aimed at removing the entire board. The filing is being interpreted by analysts as a clear signal to AB investors that InBev will not raise its $65-a-share offer – worth almost $57 billion, including debt – unless the board changes its antagonistic stance and agrees to hold discussions.
The Stella Artois and Beck’s brewer filed a motion nominating 13 new directors, all of whom are unaffiliated to InBev but who would be expected to open talks with it in response to the unsolicited offer. InBev, which owns only 100 AB shares, is taking advantage of clauses in AB’s charter and of Delaware law – where the company is registered – that allow shareholders to remove board members at any time.
In June the company filed a suit in Delaware confirming that AB shareholders had the legal ability to remove the board provided that the motion received the support of a majority of AB investors. InBev is calling on shareholders to send letters to support it.
It came as Mr Obama voiced his opposition to the takeover. The Democratic presidential candidate said: “I do think it would be a shame if Bud is foreign-owned. We should be able to find an American company that is interested in purchasing Anheuser Busch if AB feels that it is necessary to sell.”
The AB board rejected the bid almost two weeks ago and unveiled a plan to cut $1 billion in costs. It has shown reluctance so far to engage with InBev. Carlos Brito, InBev’s chief executive, said: “Our preference remains to enter a constructive dialogue.”
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