InBev working on $46 bln Anheuser bid: source

By Jessica Hall and Philip Blenkinsop

PHILADELPHIA/BRUSSELS (Reuters) - Belgian brewer InBev NV is working on a $46 billion bid for Anheuser-Busch Cos Inc, according to a source familiar with the situation.

News of a possible deal, which would be the largest in alcoholic drink history, sent Anheuser shares up as much as 10 percent on Friday while shares of InBev closed down 2.9 percent at 48.88 euros.

The source said an offer was not certain.

The news was first reported by the Financial Times, in its Alpahville blog. The report cited sources saying the approach was expected to be pitched at $65 a share but while extensive work was being carried out, InBev was not about to "push the button."

One analyst in New York said a deal could come as soon as this weekend.

"The fact of the matter is, if they want to move, they've got to move now," said Robbert Van Batenburg, head of research with Louis Capital Markets. He said clearance to combine two of the world's top brewers may be harder with a new U.S. president, since all the candidates are less friendly to the business community than current U.S. President George W. Bush.

The FT report said a financing package of $50 billion had been provisionally arranged through JPMorgan and Santander and that the bid had been discussed at an InBev board meeting on April 28 and at a meeting on Thursday.

The report also said InBev is considering a hostile bid if Anheuser management refuses friendly talks.

Officials from InBev, Anheuser and JPMorgan all declined to comment.

A deal at $65 a share represents a 23.6 percent premium over Anheuser's closing stock price of $52.58 on Thursday, the day before the report. The stock closed up 7.7 percent at $56.61 on Friday.

Talk of a possible bid by InBev -- brewer of Stella Artois, Beck's and Brahma -- for the U.S. maker of Budweiser and Michelob heated up in the past week after surfacing several times before. A Brazilian newspaper reported preliminary merger discussions as far back as February 2007.

"Anheuser-Busch shares and options have been active throughout the week due to rumors of a takeover," said William Lefkowitz, options strategist at New York brokerage firm vFinance Investments.

But Friday's new details prompted renewed interest in the brewer's call options, which give investors the right to buy shares. Roughly 213,000 calls versus 32,000 puts traded during the first half of the day, 8 times the normal level, according to option analytics firm Trade Alert.

FAIR VALUE

Wachovia analyst Jonathan Feeney said in a research note that Anheuser's limited commentary on the subject suggested a strong desire to remain independent.