:. Food Industry News

Categories: Mergers and Acquisitions

Mexico's Modelo Reserves Rights in Anheuser Bid

Source: Reuters
28/07/2008

Mexico City, 28 July, 2008 - Mexican brewer Modelo said Monday it is reserving its contractual rights regarding InBev NV's bid for Anheuser-Busch Cos Inc and has held talks with the Belgian brewer.

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Chief Executive Carlos Fernandez told a conference call with analysts he was optimistic that Modelo could reach a favorable solution for its shareholders in the wrangle over Anheuser, which half-owns Modelo.

Modelo says it has contractual rights to be able to choose whether to go into a partnership with InBev or not.

"Our agreement with Anheuser-Busch, signed in 1993, was carefully constructed to ensure we have a definite say in who our partner is," Fernandez said. "Grupo Modelo is reserving its contractual rights.

"We know InBev's management team well. We have been holding discussions over the past weeks about how we could work together should they become a minority owner in Grupo Modelo," Fernandez said.

Anheuser owns 50 percent of Modelo but does not have administrative or board control, which is in the hands of a voting trust run by a group of closely tied Mexican families.



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