Sioux Brew: InBev postpones new share issue until markets calm
Date: 10/14/2008 01:38 PM
BRUSSELS, Belgium (AP) – Brewer InBev SA said Tuesday it was postponing a $9.8 billion share issue until financial markets stabilize.
It had planned to use the money raised from selling new shares to fund its $52 billion takeover of Anheuser Busch Cos. – a deal that will create the world’s largest brewer and bring beers Budweiser and Stella Artois under one roof.
But it said “unprecedented volatility in global capital markets” meant it could not press ahead with plans to issue new shares in October. It set no new date, saying it would continue to watch market conditions.
InBev said there was no change to its target to complete the deal by the end of 2008, once it gets approval from regulators and Anheuser-Busch shareholders on Nov. 12.
