CHICAGO Anheuser-Busch has declined InBev's $46.3-billion acquisition bid this week, calling the offer "financially inadequate."
August Busch IV, president and CEO, stated in a letter sent to Carlos Brito, InBev's chief executive, that the offer to buy the company's outstanding common stock for $65 a share greatly undervalued the nation's largest brewer.
The response came after the Belgian company said Thursday that it filed a lawsuit in a Delaware court that sought to embolden A-B shareholders to take the merger decision out of the hands of the St. Louis company's board of directors.
InBev released a statement that said: "Under the charter of Anheuser-Busch and as a matter of Delaware law, it is clear that the eight directors elected after 2006 are subject to removal without cause through the written consent procedure. The filing seeks to confirm that, as InBev strongly believes, the [five] directors elected in 2006 are also now subject to removal through that same mechanism."
Last week, InBev's Brito sent a letter to Busch, saying that InBev's offer of $65 cash per share for all of A-B's outstanding common stock should be considered before proceeding with any alternative transaction.
In his letter, Brito alluded to reports that A-B may be pursuing a merger with Mexican brewer Grupo Modelo. Busch responded to Brito with a rejection letter, calling the offer "financially inadequate."
This story updates and replaces an earlier item with details of A-B's rejection.