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InBev wants to be Anheuser-Busch's best BUD

Good news for shareholders of Anheuser-Busch Cos. (NYSE: BUD). Shares of the world's second-largest brewer are surging over 8% to $56.81 on a report that it may receive a bid worth $46 billion from InBev NV.

Just last week I moped about the lack of new developments in the reported talks between Anheuser-Busch and InBev, saying that as the industry is showing signs of consolidation, BUD seems a little lonely. Well, I may have spoken too soon considering today's reports.

According to Alphaville, the Financial Times' blog, InBev, the maker of Stella Artois, is working on a $46 billion bid, worth $65 a share, for Anheuser-Busch. The sources were not identified, but they indicated "that while extensive work had been carried out on the transaction, InBev was 'not about to push the button.'" There were no official comments.

If the deal is carried out, the second-largest shareholder, Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK.A), could stand to profit from its 5% stake. Buffett, profit? Nah! Barclay's, by the way, is the biggest stakeholder.

If the companies indeed join forces, they would cover the globe between them, pump out around 350 million hectolitres of beer and other beverages annually. Annual revenues would be around $20 billion and have a market capitalization close to $100 billion.

Since the first approach last October, InBev believes Mr Busch would be more willing to deal as pressure from shareholders have been increasing. And financing, you may ask, in this climate? Well, about $50 billion has been provisionally arranged with JPMorgan Chase & Co. and Banco Santander SA.

Now the question is, do we buy BUD shares at $57, hoping to cash in at $65?

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Last updated: November 24, 2009: 06:44 AM

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