InBev Offers $46.6 B for Anhesuer Busch

123jump.com Staff
12 Jun, 2008
New York City

InBev, the Belgian-Brazil beer giant offered $46.6 billion for Anheuser Busch. The deal values the company at $65 per share, a premium of 14% from the closing price on Wednesday. Oil advanced more than $5 a barrel yesterday and boosted energy producers. European markets edged higher, led by 0.6% rise in the UK stock index.

[R]8:00AM New York, 2:00PM Frankfurt – InBev, the beer maker offered $46.6 billion for the U.S. based beer company Anheuser Busch.[/R]

InBev NV, the Belgian and Brazilian beer company made an unsolicited offer for Anheuser Busch for $65 per share or $46.6 billion. The offer is at 14% premium from the closing price on Wednesday or 18% from its peak price in October 2002. The combined company will have revenue of $36 billion and Anheuser Busch with nearly 50% of the U.S. market will significantly add to its global footprint.

Europe market update

European stocks traded mixed at mid-day, the European Statistical office reports industrial production rises in the euro area. The key indices in Germany and France rise.

The CAC 40 gained 0.15% in mid-day to 4,667.82. In Germany the DAX 30-index advanced 18.90 points or 0.28% to 6,669.16. Stocks in Switzerland advanced as the Swiss Market index gained 22.29 points or 0.31% to 7,189.59. The FTSE 100 gained 35.70 points or 0.62% to 5,759.00.

Euro areas production grow by 0.9% in April 2008

European manufacturers increase production defying the strength in euro as exports to the US, Chine and Middle East sustain their momentum. Rising crude oil prices have sustained orders from Middle East and strength in the domestic economies and continued investment in industrial production in Asian economies helped exports to the region.

Seasonally adjusted industrial production in May rose 0.9% from March in the EA15 and by 0.3% in the EU27 nations. In March production fell by 0.5% from February.

On an annual basis for member states for which data was available industrial production rose in 17 countries and fell in Ireland by 1% and in Estonia and Spain by 0.2%. The highest growth in industrial production was registered in Lithuania of 15.7%, followed by rise in Poland of 12%, in Romania of 11%, and in Netherlands of 10.6%.

Production is increasing in most euro area countries despite the challenging operating environment they are faced with, one that is characterized by rising oil prices and unstable commodity prices.

France creates more than 55,000 jobs

National Institute for Statistics and Economic Studies reported that during the first quarter of 2008, 57,400 jobs were created in metropolitan France. At the end of March 2008, employees on payroll were 16,093,100 in these sectors.

The construction industry created 12,000 jobs in March 2008 with a total of 1,484,500. The first quarter shows that the services industry employed 10,938,300 people and added 57,400 jobs. Temporary jobs rose by 15,900 to a total of 669,000.

Gainers and losers

Vallourec led the gainers in the CAC 40 index stocks with a rise of 1.89% to 204.40 euros followed by gains in Alton of 1.66% to 154.05 euros, in Total of 1.61% to 54.26 euros, in EADS of 1.17% to 13.76 euros and in Air Liquide of 0.96% to 84.96 euros.

STMicroelectronics led the mid-day decliners in the CAC 40 index with a loss of 4.59% to 7.25 euros followed by losses in Alcatel-Lucent of 3.75% to 4.10 euros, in EDF of 2.51% to 67.15 euros, in Renault of 1.89% to 56.94 euros and in Peugeot of 1.80% to 35.46 euros

Among the DAX 30 index shares, BASF AG led the gainers with a rise of 2% to 94.81 euros followed by gains in Munchner Ruck of 1.50% to 120.03 euros, in ThyssenKruppAG of 1.40% to 40.59 euros, in Commerzbank of 1.17% to 19 euros and in Fresenius Medical Care of 1.15% to 36.21 euros.

Infineon Technologies led the afternoon decliners in the DAX 30 index with a fall of 1.76% to 5.85 euros followed by losses in Henkel KGaA of 1.38% to 28.66 euros, in BMW AG of 1.20% to 33 euros, in Deutsche Post of 1.06% to 18.63 euros and in Deutsche Borse of 0.97% to 79.52 euros.

Gold declined in the morning trading in Europe

At mid-day, in London, gold lost $10.70 to $871.25 an ounce. Silver gained 25 cents to $16.58 an ounce, platinum lost $10 to $2,020 an ounce and palladium was unchanged at $426 an ounce.

Asian markets review

In Tokyo Nikkei 225 Index closed lower 294.88 or 2.08% to 13,888.60, in Hong Kong Hang Seng index decreased 303.74 or 1.30% closed to 23,023.86. In Australia ASX 200 index lower 138.10 or 2.53% to close 5,329.20. In Malaysia KL Composite index decreased 3.74 or 0.30% closed to 1,225.54.

In South Korea Kospi Index increased 42.31 or 2.37% to close at 1,739.36, in Thailand SET index closed lower 0.86 or 0.11% to 790.80 and Indonesia JSE Index edged increased 34.22 or 1.44% to 2,409.01. Sensex index in India increased 64.88 or 0.43% to 15,250.20.