3.6 Anheuser-Busch (AB) rejected InBev’s all-cash offer price of $65 per share, saying it undervalued the company, despite the offer’s representing a 35% premium to AB’s preannouncement share price. InBev refused to raise its offer while repeating its strong preference for a friendly takeover. Speculate as to why InBev refused to raise its initial offer price. Why do you believe that InBev continued to prefer a friendly takeover? What do you think InBev should have done to pressure the AB board to accept the offer? (Appendix)