InBev working on $46 billion Anheuser bid: report

LONDON/BRUSSELS (Reuters) - Belgian brewer InBev, the world's second-biggest by volume, is working on a $46 billion bid for Anheuser Busch, a Financial Times report said, boosting the U.S. brewer's stock price.

At 12:00 p.m. EDT (1600 GMT), Anheuser Busch shares were up 6.9 percent at $56.15. InBev closed down 2.9 percent at 48.88 euros. The DJ Stoxx European food and beverage index was down 0.8 percent.

In the report on its Alphaville blog on the newspaper's website, the FT cited sources as saying the approach was expected to be pitched at $65 a share but while extensive work was being carried out InBev was not about to "push the button".

The report also said a financing package of $50 billion had been provisionally arranged through JPMorgan and Santander and that the bid had been discussed at an InBev board meeting on April 28 and at a meeting on Thursday.

InBev said it would not comment on the report. Anheuser was not immediately available but has a policy of not commenting on market rumors. A JPMorgan spokeswoman declined to comment.

Rumors have repeatedly surfaced over a possible bid by InBev, brewer of Stella Artois, Beck's and Brahma, for the U.S. giant, whose output includes Budweiser and Bud Light.

"Anheuser-Busch shares and options have been active throughout the week due to rumors of a takeover," said William Lefkowitz, options strategist at brokerage firm vFinance Investments in New York.

WHEN NOT IF

Gerard Rijk, a beverage sector analyst at ING in Amsterdam, said he felt the deal was a question of when, rather than if, a view shared by others following the sector.