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

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

    2. How much should InBev be willing to pay to acquire all of Anheuser-Buschs shares? As a base case, please use the projections in case Exhibit 4.

    3. 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%?

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

    5. What alternative options does August Busch IV have to respond to InBevs public bid on June 11, 2008?

    6. Please value Anheuser-Busch as of December 31, 2007. Please note all key assumptions; be prepared to discuss and justify them.

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