Anheuser-Busch (AB) rejected InBevs all-cash offer price of $65 per share, saying it undervalued the...

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Finance

Anheuser-Busch (AB) rejected InBevs all-cash offer price of $65 per share, saying it undervalued the company, despite the offer representing a 35% premium to ABs preannouncement share price. InBev refused to raise its offer while repeating its strong preference for a friendly takeover. Speculate as to why InBev refused to raise its initial offer price. Why do you believe that InBev continued to prefer a friendly takeover? What do you think InBev should have done to raise pressure on the AB board to accept the offer?

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