Experts see Anheuser pushing for higher price

By Martinne Geller

NEW YORK (Reuters) - Anheuser-Busch Cos Inc (BUD.N: Quote, Profile, Research), which has received an unsolicited takeover bid from Belgian brewer InBev NV, has few options aside from negotiating a higher price, according to analysts and people familiar with the situation.

InBev INTB.BR, the world's No. 2 brewer with brands including Stella Artois and Beck's, offered $46.3 billion, or $65 a share, on Wednesday for the iconic U.S. maker of Budweiser and Michelob.

Anheuser said in a statement on Wednesday that it would review the merits of the proposal and decide in due course.

The company's board must now negotiate a better price or quantify how an independent Anheuser can generate equal or higher shareholder value than the InBev bid, Credit Suisse analyst Carlos Laboy wrote in a research note.

A source close to the deal also said Anheuser is expected to refuse the initial bid and hold out for more.

"A-B's best defense is on value. They have their work cut out," the source said, referring to the lack of an obvious rival bidder.

Anheuser, which was once the world's largest brewer, controls nearly half the U.S. beer market with brands such as Bud Light, the world's top seller. But it has been overtaken in recent years as it concentrated on its home market while rivals like InBev and SABMiller Plc (SAB.L: Quote, Profile, Research) gained scale through international acquisitions.

Meanwhile, the U.S. market has been squeezed as consumers opt for wine, spirits or beers made abroad or in small batches. Besides slowing sales, brewers are struggling with soaring costs for barley and fuel.