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Grupo Modelo CEO resigns from A-B board
STAFF REPORTS

Anheuser-Busch Cos. announced Friday that Carlos Fernandez, the CEO of Mexican brewer Grupo Modelo, has resigned from A-B's board of directors.

Fernandez informed Anheuser-Busch Thursday that the resignation was effective immediately, the St. Louis brewer said in a press release.

Fernandez's departure reduces the board's size to 13 members.

No reason was given for the resignation, which comes ahead of a board meeting to discuss at InBev's $47.5 billion cash offer for Anheuser-Busch, the country's largest brewer.

Adolphus Busch IV, the uncle of Anheuser-Busch CEO August A. Busch IV, told the Post-Dispatch that the board would meet today in St. Louis.

As part of a possible defense, Anheuser-Busch might try to strike a deal to acquire Modelo, Mexico's largest brewer and the maker of Corona beer. By acquiring Modelo, Anheuser-Busch could make itself too expensive for InBev to take over.



Last week, the Wall Street Journal reported that both companies had preliminary discussions, but analysts remain skeptical that a deal is possible. They say relations between the two companies have been tense, adding that family-run Modelo would be reluctant to yield control of the business.

How the resignation fits into this drama is unclear.

However, a Modelo deal appears to be A-B's best -- and most realistic -- defense against InBev's $65 a share offer, according to analysts.

Barring a deal, they believe the board will be under tremendous pressure not to reject outright an InBev offer. Instead, the board might try to negotiate a better share price price offer for the company.

Meanwhile, InBev continued its public relations campaign against the St. Louis brewer. This morning, the Belgian brewer posted a video clip of InBev CEO Carlos Brito making another pitch, explaining how the deal would benefit St. Louis and other A-B stakeholders.
 
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