InBev talks with Modelo on A-B transaction-source

PHILADELPHIA, July 13 (Reuters) - InBev NV INTB.BR continues discussions with Mexico's Grupo Modelo (GMODELOC.MX) over the planned $50 billion takeover of Anheuser-Busch Cos Inc (BUD.N), a source familiar with the situation said on Sunday.

Modelo, already 50 percent owned by Anheuser, has the right to choose its partner and therefore has a role in discussions of any acquisition of Anheuser-Busch.

InBev and Modelo have been in discussions, but Modelo has not yet accepted InBev as its new partner, the source said. The two companies are expected to continue talks after InBev formally announces its acquisition of Anheuser-Busch, the source said.

InBev and Modelo could not be reached for comment. (Reporting by Jessica Hall) (For more M&A news and our DealZone blog, go to here)