A-B-InBev Combo Rumors Heat Up

Could things get hostile?

The perennial rumors of a combination between Anheuser-Busch and InBev heated up this week.

A Belgian business magazine reported that the two were in talks that could lead to a merger.

From a Reuters report:

InBev, the world's second-largest beer producer by volume, and. Anheuser-Busch are in talks that could lead to a merger of the two, Belgian business magazine Trends said on Thursday.

The New York Times’ Deal Book blog, citing Breakingviews, suggested that now -- as opposed to last year when similar rumors surfaced -- InBev would hold the upper hand in a deal. That’s due to its higher market valuation and the superior performance of its stock.

From the Times’ Deal Book blog:

And, Breakingviews argues, the Busch family may not be willing to accept a smaller role in their beloved family business.

All of which, it concludes, sets the the stage for a hostile takeover, especially since the Busch family, which holds only about 3 percent of the company, does not control the brewer through super-voting shares.

Moreover, in a bar-room brawl, says Breakingviews, InBev could probably count on plenty of disappointed Bud shareholders, the second-largest being Warren E. Buffett, to watch its back.

The Reuters report can be seen here.

The Deal Book blog report can be seen here.

The Breakingviews report can be seen here.