Anheuser rejects InBev bid but leaves door open

NEW YORK (Reuters) - U.S. brewer Anheuser-Busch Cos Inc (BUD.N) rejected on Thursday InBev NV's INTB.BR $46.3 billion takeover bid as inadequate, but left the door open to a higher bid.

The maker of Budweiser said InBev's $65-per-share bid undervalued the company, which controls nearly half the U.S. beer market, owns half of Grupo Modelo (GMODELOC.MX) in Mexico and 27 percent of China's Tsingtao Brewery Co Ltd (600600.SS).

The bid -- which was unanimously rejected by Anheuser's board -- represented a 24 percent premium to Anheuser's closing share price a day before reports of merger talks surfaced, but the company said it also undervalued the impact of its growth plan, which includes a cost-cutting initiative code-named "Blue Ocean."

"While Anheuser-Busch pursues its plan, its board will continue to consider any strategic alternative that would be in the best interests of Anheuser-Busch shareholders," Chief Executive August Busch IV said in a letter to InBev Chief Executive Carlos Brito.

"The board is open to consider any proposal that would provide full and certain value to Anheuser-Busch shareholders," he added.

The St. Louis-based company said its 13-member board thoroughly studied the proposal with independent financial and legal advisers on multiple occasions during the two-week period since the proposal was made. The board's independent directors also met alone to examine its merits, it added.

The company said it aims to deliver more than $750 million in savings through 2009 and $1 billion in savings through 2010.

The Wall Street Journal reported on Wednesday that Anheuser was expected to also announce that it may seek to sell its theme park and packaging businesses, and a possible special dividend.

Anheuser shares rose to $61.90 in after-hours trade from their New York Stock Exchange close of $61.35.

(Reporting by Martinne Geller, editing by Mark Porter and Andre Grenon)