Modelo CEO Resigns From Anheuser-Busch's Board

June 20, 2008 2:50 p.m. EST

New York, NY (AHN) - Anheuser-Busch Cos. announced on Friday that CEO Grupo Modelo SAB CEO Carlos Fernandez resigned from the Anheuser-Busch board.

The U.S.'s biggest brewer Anheuser-Busch was recently approached to takeover by InBev NV, who offered a record setting $46.3 billion-in-cash deal.

Belgium-based InBev, whos is a maker of Stella Artois, Becks and Bass, had proposed to pay $65-a-share in cash for Anheuser-Busch, the maker of Budweiser.

The takeover proposal, if accepted by the maker of Budweiser, would create the world's largest brewer. But it was not pursued by Anheuser-Busch

Anheuser-Busch has a non-controlling half stake in Modelo and was in the process to merge with the company after it wanted to block InBev's unsolicited takeover offer.

While, the resignation of its CEO followed the speculations that Modelo, which is controlled by a group of Mexico City families, was not interested in the merger as it wanted to remain independent.

However, it is believed that Fernandez was not against the InBev acquisition.

Shares of Anheuser-Busch gained by rose 19 cents to $61.24 in New York Stock Exchange composite trading during early morning trading. Grupo Modelo declined in Mexican stock exchange trading on Friday.