Virtual war

27 June 2008 By John Foley Follow @johnsfoley

Inbev and BG Group both turned warlike this week. The upsurge in muscular action is probably a consequence of the end of the credit boom. When sellers won t accept their value has fallen, hostility may be the only way to break the logjam.

This content is for Subscribers only

Context News

Inbev said it had confirmed from legal sources that shareholders in Anheuser Busch have the power to eject the US brewer's board. The news came as Anheuser rejected Inbev's $65ashare offer as "financially inadequate". The bid marks a 35% premium to Anheuser's undisturbed price, and exceeds Anheuser's standalone value, according to a breakingviews analysis.

BG Group on Tuesday made its $13bn bid for Australia's Origin Energy openly hostile, saying it would present its bid direct to shareholders. Origin's board had originally supported BG's offer, but withdrew its backing after another bid in the same sector suggested Origin could be worth more.

Email a friend

Please complete the form below.

Required fields *