InBev faces rival bid for Anheuser-Busch

The battle for Anheuser-Busch (A-B) was ramped up at the weekend with InBev warning the US brewing giant not to do a deal with a rival company.

In a letter to A-B InBev warned of "potential adverse consequences" if it ignores its $46bn (£24bn) bid offer - lodged last week -and decides to merge with Mexican brewing giant Grupo Modelo.

Writing to A-B's board, InBev said it noted recent press reports suggesting A-B may have approached the Mexican group regarding a possible transaction between it and Anheuser-Busch.

"In light of the reports," InBev wrote, "we believe it is important for you and your board to understand that our proposal to combine with Anheuser-Busch by means of acquiring all Anheuser-Busch outstanding shares for $65 per share in cash is made on the basis of Anheuser-Busch's current assets, business and capital structure.

"Accordingly, we would expect that prior to proceeding with any alternative transaction, especially if your shareholders will not be given the opportunity to vote on it, you would first fully explore our offer and the potential adverse consequences any such transaction could have on the ability of your shareholders to receive our premium offer."

InBev said while it had the "greatest respect" for Grupo Modelo, it believed A-B wouldn't find a more value-creating offer for shareholders than its own.

"We are convinced that your shareholders would reach the same conclusion," it added.

At the time of writing A-B had not publicly acknowledged InBev's letter.