NEW YORK - Anheuser-Busch Companies on Friday detailed its plan to make the company more valuable than the $65 -per-share offer it rejected from InBev, and gave 2008 and 2009 profit guidance above analyst expectations.
Anheuser-Busch details plan to fend off InBev takeover
June 28, 2008 at 4:08AM
In a conference call with investors, Anheuser-Busch executives reiterated that InBev's proposal, which it rejected on Thursday, undervalued the St. Louis-based company.
The call came a day after InBev filed suit in Delaware court, where Anheuser-Busch is incorporated, seeking to declare that shareholders can remove all 13 members of Anheuser-Busch's board. Such a declaration could be the first step to rally Anheuser-Busch shareholders to accept InBev's offer, even if management is opposed.
Anheuser-Busch now plans to save $1 billion total between 2008 and 2010, up from $500 million it said it expected to save in February.
Also, it is implementing an early retirement plan it'll offer to salaried employees in the third quarter. Of 8,600 eligible for the program, including 1,300 who are 55 and older, the company expects 10 to 15 percent will accept the plan.
The brewer also said it is increasing its 2008 share repurchase plan to $3 billion from $2 billion and plans $4 billion of repurchases in 2009.
Shares rose 91 cents Friday, to close at $62.26, after climbing to a 52-week high of $62.80 earlier in the session.
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