Anheuser-Busch seen buying time as board gathers

NEW YORK (Reuters) - Anheuser-Busch Cos Inc (BUD.N) may play for time as its board meets formally for the first time since receiving a $46.3 billion takeover bid from Belgian-Brazilian brewer InBev NV INTB.BR.

Analysts have said the Budweiser brewer is unlikely to embrace the proposal, which would create the world's largest beer maker, but Anheuser may also decide not to reject it outright at a meeting that is due to be held within the next 48 hours, industry experts said.

Instead the St. Louis-based brewer is likely to suggest that the bid, which sparked an outcry from some U.S. politicians and led InBev to hire Washington lobbyists, undervalues the company, analysts have said.

"I suspect that they (the board) will say that the offer is too low and that they are looking at options to create better value to get to a higher number," said Harry Schuhmacher, publisher of Beer Business Daily. "They won't reject the offer ... but they'll signal that it's too low."

InBev, the world's second-largest brewer with brands including Beck's, Stella Artois and Bass, was formed by the 2004 merger of Belgium's Interbrew with Brazil's AmBev. It is based in Belgium, but run by Brazilian managers who have a reputation for aggressive cost-cutting.

It was not immediately clear whether the Anheuser board had already gathered. A company spokeswoman declined to say whether the meeting had begun on Thursday or was due to start on Friday.

Anheuser-Busch, which owns the world's best-selling beer, Bud Light, and controls nearly half the U.S. beer market, has remained tight-lipped about the bid, which threatens to cap nearly 150 years of independence.

In a statement, Anheuser Chief Financial Officer W. Randolph Baker said the company's inability to comment "should not be interpreted as support for, or opposition to the proposal...

Morningstar analyst Ann Gilpin said Anheuser's board would have difficulty negotiating a higher bid, especially since InBev CEO Carlos Brito has said $65 was his top offer.

"I just think the board doesn't have a lot of negotiating power," Gilpin said. She noted Anheuser's shares had never before come close to $65, its management has had plenty of time to turn around the company, and the Busch family's ownership stake is small.

Other analysts said they see the bid bubbling toward $70 per share, fueled by InBev's desire to have support from the Anheuser board and comparative valuations from other recent beer deals.

According to the method of valuation likely to be used by Anheuser, Morgan Stanley analyst William Pecoriello said last week that InBev is offering about 11.4 times trailing earnings before interest, taxes, depreciation and amortization. That is below the 11.9 multiple Heineken (HEIN.AS) recently paid for mature assets in Europe.

Aside from arguing about valuation, analysts have said Anheuser could announce its own aggressive restructuring plan or sell off some non-core businesses, such as its theme park business, valued by Lehman Brothers at $2.9 billion.

(Additional reporting by Megan Davies)