How much should inbev be willing to pay to acquire


Assignment

Read case and review the exhibits

Think about the following questions and be prepared to discuss:

a. Does the merger of Anheuser-Busch and InBev make sense from a strategic point of view? If so, how is value being created?

b. How much should InBev be willing to pay to acquire all of Anheuser-Busch's shares? As a base case, use the projections in case Exhibit 4.

c. How much should InBev be willing to pay if it were to expect extra revenue synergies of EUR3,000 in 2008, which were expected to grow at 6%?

d. Perform sensitivity analysis and identify the key factors affecting the price that InBev should pay.

e. What alternative options does August Busch IV have to respond to InBev's public bid on June 11, 2008?

f. Value Anheuser-Busch as of December 31, 2007. Note all key assumptions; be prepared to discuss and justify them.

Format your assignment according to the give formatting requirements:

a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.

b. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.

c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.

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Financial Management: How much should inbev be willing to pay to acquire
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