InBev, Anheuser-Busch Deal May Settle At $70-A-Share

New York, NY (AHN) - Shares of the maker of Budweiser surged on Friday on reports that Anheuser-Busch and InBev are in talks to settle a deal worth around $50 billion.

The reports emerged after Belgian brewer InBev wanted to oust Anheuser-Busch board members to pressurize them to accept its earlier takeover bid in an hostile measure.

The Belgian brewer filed a preliminary consent solicitation statement, intending to replace Chief Executive Officer August A. Busch IV along with other directors, with the U.S. Securities and Exchange Commission on Monday.

Following which Anheuser-Busch filed a lawsuit claiming that InBev's $65 a share takeover offer is illegal, deceptive and not properly financed.

Patrick Stokes, chairman of Anheuser-Busch's board had said that InBev's proposal significantly undervalued the unique assets and prospects of Anheuser-Busch.

He added that the proposal also undervalued the "earnings growth actions that the company had already planned, which have significant potential for shareholder value creation."

On Friday, the reports have speculated that the friendly deal may yield the U.S.'s biggest brewer Anheuser-Busch $70 a share, which is $5 more than its earlier offer.

InBev, who is a maker of Stella Artois, Becks and Bass, had proposed to pay $46.3 billion-in-cash deal to takeover Anheuser-Busch, the maker of Budweiser.

InBev has indicated that it intends to negotiate the takeover price per share with Anheuser, which was still above $50 per share price before the takeover bid was offered.

Shares of St. Louis-based brewing giant gained by 7.6 percent or $4.66 to $65.87, after advancing to a 52-week high of $66.20, in New York Stock Exchange composite trading during afternoon trading session on Friday.

The takeover proposal, if accepted by the maker of Budweiser, would create the world's largest brewer.