How can InBev force Anheuser to sellout?

Question

What is a "hostal takeover" and how can this happen?

Answer 1

A hostile takeover occurs when the board of directors of the company being bought rejects the buyer's offer(s), and the buyer goes ahead and makes an offer directly to the shareholders of the target company. If a certain majority of the shareholders agree to tender their shares to the buyer, there is not much that can be done to stop the takeover from being completed.

In the case of Anheuser, the board rejected InBev's offer as too low and not in the best interest of shareholders. The most likely scenario would be an increase in the offering price, which will probably also be rejected by the board, leading to an offer made directly to shareholders. Warren Buffett, whose Berkshire Hathaway owns 5% of Anheuser, has already endorsed InBev's offer. His clout is likely to persuade other large institutional holders to follow suit and put more pressure on the board to come to an agreement.