Merger Speculation Sends Anheuser-Busch Shares to Two-Year High

Shares of Anheuser-Busch rose to a two-year high yesterday after a report in a Brazilian newspaper Valor Economico claimed the company was discussing a merger with the world's top brewer InBev. Both companies declined to comment. The paper claimed to have learned of the merger talks between InBev and Anheuser-Busch from three Brazilians on the InBev board. The paper added talks were still at a preliminary stage, and also cited an unnamed investment banker who claimed the merger had "big chances of happening one day." BUD shares were up $1.52, or 3%, to $51.75.

Sources: Business Week, Washington Post, MarketWatch, Reuters
Commentary: Anheuser Busch Sets Up Bud.TV For Internet Reach • Cramer's Take on BUD • Anheuser-Busch Companies Q4 2006 Earnings Call Transcript
Stocks/ETFs to watch:Anheuser-Busch Companies (BUD). Competitors: Molson Coors Brewing Company (TAP), The Boston Beer Company (SAM), Constellation Brands (STZ), Redhook Ale Brewery (HOOK). ETFs: PowerShares Dynamic Food & Beverage (PBJ), Vanguard Consumer Staples (VDC)

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