InBev warns Bud away from Mexico

Belgian brewing giant InBev today warned its $46 billion (£23.6 billion) US bid target Anheuser-Busch not to pursue a takeover of Corona beer maker Modelo of Mexico.

The Stella Artois maker told the Budweiser giant it should fully explore the InBev offer before attempting any "spoiler" deal. Anheuser-Busch has held exploratory talks with Modelo over a deal as part of its strategy to deter InBev.

InBev chief executive Carlos Brito suggested that doing a deal with Modelo could affect the value of its $65-ashare offer. InBev last week launched an unsolicited bid for Anheuser-Busch. A deal would create the world's largest brewer. Busch said its board would evaluate the proposal carefully. Brito said he was committed to a "friendly combination", and he had read press reports that Anheuser may have approached Modelo.

He added: "We would expect that prior to proceeding with any alternative transaction, especially if your shareholders will not be given the opportunity to vote on it, you would first fully explore our offer and the potential adverse consequences any such transaction could have on the ability of your shareholders to receive our premium offer."