Politics may hinder InBev's bid to buy Anheuser-Busch

ST. LOUIS - Belgian brewer InBev is offering a big payday to shareholders of Anheuser-Busch Cos. Inc., but its bid to create the world's largest beer company is already facing a major obstacle - US election-year politics.

InBev SA, whose brands include Beck's and Stella Artois, delivered an unsolicited all-cash bid of $46 billion, or $65 a share, for Anheuser-Busch, which makes Budweiser, Michelob, and Bud Light.

The bid, disclosed after the markets closed Wednesday, was an 11.3 percent premium over the St. Louis company's closing share price of $58.35. Anheuser-Busch shares rose $3.05 to close at $61.40 yesterday.

In a conference call yesterday with investment analysts, InBev chief executive Carlos Brito laid out the company's rationale for the acquisition. A key part of the strategy is making Budweiser a global brand along the lines of Coca-Cola or Pepsi, Brito said.

"We see a similar opportunity here," Brito said. "Budweiser would be a flagship brand. It's a brand known by a lot of consumers around the world. They look for what we call international premium brands."

InBev would use the Budweiser brand to boost business in European and Asian countries where Budweiser is now a niche player, Brito said.

But politicians and activists are already lining up against the deal, saying it could cost jobs in the United States and send ownership of an iconic American company overseas. With economic concerns at the front of voters' minds, the opposition could cause a headache for InBev.

Republican Governor Matt Blunt said Wednesday he opposes the deal, and directed the Missouri Department of Economic Development to see if there was a way to stop it.

"I am strongly opposed to the sale of Anheuser-Busch, and today's offer to purchase the company is deeply troubling to me," Blunt said in a statement.

Websites have sprung up opposing the deal on patriotic grounds, arguing that such an iconic US firm shouldn't be handed over to foreign ownership. One of the sites, called SaveAB.com, was launched by Blunt's former chief of staff, Ed Martin.

"Shareholders should resist choosing dollars over American jobs," Martin said in a statement Wednesday night. "Selling out to the Belgians is not worth it - because this is about more than beer: It's about our jobs and our nation."

But Brito said in the conference call the proposed combination "is in the best interest of all constituents, including both companies' shareholders, employees, consumers, wholesalers, business partners, and the consumers they serve."

He said the plans do not foresee the closing down of any breweries in the United States.

If the deal goes through, it would create a beer-brewing giant and mark just the latest phase of consolidation in an industry facing rising ingredient costs and stale demand in the United States.

"Anheuser-Busch said that its board of directors will evaluate the proposal carefully and in the context of all relevant factors, including Anheuser-Busch's long-term strategic plan," the company said in a statement.