Another day, another BUD defense

Anheuser-Busch has tried all the usual tactics to defend itself against the unwanted $46.3 billion takeover bid by InBev NV, but now it has resorted to more inventive means.

The brewer of the iconic American beer, Budweiser, has sued InBev and called the Belgian’s beer company’s takeover attempt an “illegal plan and scheme” to acquire Anheuser “at a bargain price.” Translation? How dare those European barbarians practice good old American style capitalism?!!

Anheuser-Busch also accused InBev of “a course of deceptive conduct” and asked for an injunction to stop InBev’s efforts to remove Anheuser-Busch’s board until certain false and misleading statements were fixed. InBev could not be immediately reached for comment.

The lawsuit said InBev has failed to disclose information about its Cuban business and how that would impact its promise to keep the combined company’s North American headquarters in St. Louis.

Anheuser-Busch on Monday had bashed InBev for its ties to Cuba. InBev has a subsidiary that partners with the government of Cuba to produce and distribute Bucanero, Bucanero Malta, Bucanero Max, Cristal and Mayabe brand beers.

InBev said its volume of beer sold in Cuba constitute less than 1/2 of 1 percent of its total global volumes. The Belgian brewer also said its Cuban business does not violate U.S., EU or international law, and it would continue to comply with those laws if it were to successfully acquire Anheuser-Busch.

So, what’s next?

Anheuser-Busch has said that InBev’s $65 per share offer was too low. But it still represents a premium to where BUD’s stock price now trades. In May, one of Anheuser-Busch’s own financial advisers, Goldman Sachs, reaffirmed its 12-month price target of $49 on BUD’s stock.

It also said InBev’s proposed nominees to replace Anheuser-Busch board was a self-serving effort. Anheuser-Busch said “shareholders should ask themselves whether the directors selected by InBev would negotiate the best transaction for Anheuser-Busch shareholders.” One of InBev’s nominees is Adolphus Busch IV, the uncle of Anheuser-Busch’s current CEO and a BUD shareholder.

Anheuser-Busch also said its own plans would provide better value for shareholders than InBev’s offer, but so far the company’s efforts to cut $1 billion in costs and improve earnings has failed to spark a jump in Anheuser-Busch’s stock price.

Will the sheer volume of BUD’s arguments sway shareholders its way? The jury is still out, but it’s looking doubtful so far.