InBev cautions Bud over Modelo deal

By Megan Davies

NEW YORK (Reuters) - Belgian brewer InBev NV INTB.BR warned U.S. rival Anheuser-Busch (BUD.N) on Sunday that it should fully explore its $46 billion (23 billion pound) takeover offer before striking out to do any potential deal with Mexico's Modelo (GMODELOC.MX).

In a letter that appeared aimed at Anheuser-Busch shareholders, InBev suggested that doing a deal with Modelo could impact the value of its $65-a-share takeover offer.

InBev, whose beers include Stella Artois and Beck's, on Wednesday made an unsolicited bid to buy Anheuser-Busch, which brews the popular Budweiser brand. A deal would create the world's largest brewer. St Louis, Missouri-based Anheuser-Busch responded that its board would evaluate the proposal carefully.

On Friday, The Wall Street Journal, citing people familiar with the matter, reported that Anheuser-Busch had begun talks with Mexico's No. 1 brewer, Grupo Modelo, about a possible combination of the two companies that could help it thwart the Inbev bid.

Anheuser-Busch owns a 50 percent stake in Modelo, maker of Corona beer, which is emerging as a critical power broker in the battle for control of Anheuser-Busch.

In the letter, dated Sunday, Inbev's Chief Executive Carlos Brito told Anheuser-Busch's CEO August Busch IV that he was committed to a "friendly combination."

But he said: "We have read the recent press reports suggesting that you may have approached Grupo Modelo regarding a possible transaction between Anheuser-Busch and Grupo Modelo or affiliated entities."

He said it was important that Anheuser-Busch understood that Inbev's offer was "made on the basis of Anheuser-Busch's current assets, business and capital structure."