$46 billion offered for maker of Budweiser

ST. LOUIS - Anheuser-Busch Companies, the nation's biggest brewery, received a $46 billion buyout offer Wednesday from a Belgian brewer that might be too good to refuse.

The maker of Budweiser beer said Wednesday that InBev SA, whose brands include Beck's and Stella Artois, delivered an unsolicited all-cash bid of $65 a share. It's unclear whether senior Anheuser-Busch executives believe the deal makes sense, but shareholders may be drawn to the offer, which represents a sizable premium over the company's closing price Wednesday of $58.35.

"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 prepared statement. "The board will pursue the course of action that is in the best interests of Anheuser-Busch's stockholders."

A spokeswoman said the company would not comment beyond the statement.

Speculation has been rife in past weeks that a takeover bid was coming. The beer industry has been consolidating in recent years amid rising ingredient costs and lower demand in the United States.

Shares of the U.S. brewer surged almost 8 percent, to $62.84 after hours, when the announcement was made. They had risen 2 percent in regular trading, when CNBC reported rumors of the deal.

Opposition to a potential takeover has already been fierce in Anheuser-Busch's hometown of St. Louis, and elsewhere in the U.S. The brewer employs 6,000 people in St. Louis, and many workers are worried InBev will cut jobs as the companies consolidate.

Websites have sprung up opposing the deal on patriotic grounds, arguing that such an iconic U.S. firm shouldn't be handed over to foreign ownership. One called SaveAB.com offers visitors yard signs and bumper stickers to express their distaste for the purchase. Republican Gov. Matt Blunt said Wednesday that 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.

InBev was formed in 2004, when Belgium's Interbrew merged with South America's biggest brewer, AmBev. The company has since cut jobs in several European countries, even as its sales were boosted by strong Latin America demand.

InBev has a reputation for squeezing costs out of the companies it acquires, said Benj Steinman, editor of the Beer Marketer's Insights trade publication. Because of its size, Anheuser-Busch could be a ripe target for cost-cutting.

"One theory is that their own cost reductions are winding down in Europe and Asia and around the world, and they need somewhere to sort of implement what they're best at," Steinman said.

Anheuser-Busch executives have made cost-cutting a goal over the past two years. U.S. sales have been stagnant, as consumers turn toward wine and cocktails, and the rising costs of ingredients have bitten into profit margins.

Last year, Anheuser-Busch turned a profit of $2.12 billion, up nearly 8 percent from $1.97 billion in 2006. But its core brands of Budweiser and Bud Light lagged as sales of craft beers and imports rose.

While the InBev deal looks sweet on paper, it's far from a sure thing. Anheuser-Busch did not release details of how InBev planned to finance the deal, and raising so much capital could be tough as banks tighten their standards during a global credit crunch.