Anheuser shares rise on report of merger talks
NEW YORK (Reuters) - Brewer Anheuser Busch Cos Inc (BUD.N) shares rose more than 4 percent on Friday as a report of renewed merger talks between it and InBev NV INTB.BR displaced disappointment over fourth-quarter earnings.
The maker of Budweiser and Bud Light reported quarterly profit that missed analysts' estimates on Thursday, as Mexican brewer Grupo Modelo (GMODELOC.MX), which is half-owned by Anheuser, experienced weak sales of Corona in the United States, its largest export market.
But the Wall Street Journal reported on Friday that merger discussions between Anheuser, the world's No. 3 brewer and InBev, the No. 1 brewer, have become more serious and that a deal is possible this year.
"Investors that otherwise would have concentrated on the negative effects from a weak equity income line may now consider that Anheuser is priced cheaply for a potential bid from InBev," wrote Bear Stearns analyst Justin Hott in a research note.
Rumors of a tie-up between Anheuser and the Belgium-based maker of Beck's and Stella Artois have been swirling for nearly a year after reports of talks emerged in a Brazilian newspaper last February. InBev was formed by the 2004 combination of Brazil's AmBev with Belgium's Interbrew.
Analysts have said the combination would give the enlarged group greater global scale, while a combination of Anheuser's U.S. business and InBev's Labatt business in Canada would give better regional scale and their Chinese interests would be complimentary.
Both Anheuser and InBev declined to comment on rumors or speculation.
Anheuser shares were up $1.67 at $48.19 on the New York Stock Exchange in afternoon trade.
(Reporting by Martinne Geller, editing by Phil Berlowitz)
