Stella twists BudÔÇÖs arm

Belgian-Brazilian brewer InBev is still determined to capture Budweiser brewer Anheuser-Busch after its initial $46 billion proposal was rejected ten days ago, by attempting to remove the companyÔÇÖs entire board in a hostile takeover.  ┬á An alternate board, which would include Adolphus Busch IV, the uncle of Anheuser CEO August Busch IV, will give shareholders "a direct voice" in the takeover, InBev said.┬á┬á InBev, best known for its Stella Artois brand, plans to file a preliminary consent solicitation with the US Securities and Exchange Commission today, asking Anheuser's board to consult shareholders over the sacking of its 13 current board members.┬á┬á InBev said it was taking action because Anheuser has refused to discuss the deal. ÔÇ£Our strong preference remains to enter into a constructive dialogue with Anheuser-Busch to achieve a friendly combination that comprehensively addresses the interests of all constituents," InBev chief executive Carlos Brito said in a statement. ┬á┬á Anheuser-Busch rejected the bid on June 26th, saying it undervalued the company and that shareholders would be better rewarded by the company following its own strategic growth plan. ┬á┬á Brito has criticized this strategy for involving "significant execution risks" by failing to tackle the problems of rising prices for transportation and key ingredients.┬á┬á The alternate board proposed by InBev would include former Guidant CEO Ronald Dollens; former Nabisco CFO James Healey; ex-Pillsbury CEO John Lilly; ex-Glaxo CEO Ernest Mario; and former Lockheed Martin chief counsel William Vinson, as well as Adolphus Busch IV.┬á┬á A merger would create the worldÔÇÖs largest brewer, and the proposed deal has some stiff opposition from those would believe it would create a near-monopoly in the US beer market and damage the economy in AnheuserÔÇÖs home state of Missouri. InBev has promised not to close any US breweries and to keep the company's North American headquarters in St. Louis.┬á┬á After the SEC filing, Anheuser-Busch will have ten days to name a date for consulting shareholders.   ┬á┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á