hr: Money

Anheuser-Busch Cos., the U.S. brewer being pursued for a takeover by InBev NV, said Grupo Modelo SAB Chief Executive Officer Carlos Fernandez resigned from the Anheuser-Busch board.

Fernandez resigned “to avoid appearance of any conflict,” said Modelo spokeswoman Jennifer Shelley.

Smith’s Anheuser-Busch recommendations returned 10 percent in the last year, ranking her fifth among 16 analysts tracked by Bloomberg.

Modelo, which is 50 percent owned by Anheuser-Busch through direct and indirect stakes, said last week it wants to remain a Mexican-owned company, countering speculation it may sell to the U.S. brewer.

The company’s directors meet today to consider InBev’s $65-a-share offer, the St. Louis Post-Dispatch reported yesterday, citing the uncle of CEO August A. Busch IV.

“It shows that Grupo Modelo doesn’t want to get in the middle of the negotiations between InBev and Anheuser,” said Marco Reyes, an analyst with Mexico City-based brokerage IXE Casa de Bolsa SA. Reyes is the top-ranked analyst in terms of Modelo recommendations, with his picks returning 9.9 percent.

Anheuser-Busch, which makes Budweiser beer, declined 38 cents to $60.67 at 4:02 p.m. in New York Stock Exchange composite trading. Grupo Modelo fell 1.73 pesos to 53.02 pesos in Mexican stock exchange trading. Anheuser-Busch also said today it is buying the remaining 50 percent stake in Crown Beers India Ltd. from its joint venture partner Crown International. Modelo’s controlling families may decide either to try to buy the stake now owned by Anheuser-Busch or sell their shares after a transaction, analysts said.

“I don’t think they’re willing to sell,” said Reyes, who recommends buying Modelo shares. “If InBev buys Anheuser, Modelo will remain just as it is.”

Separately, InBev CEO Carlos Brito, addressing critics of the company’s previous cost-cutting, said that Anheuser-Busch’s wholesale distributors will be “key” should the brewers agree to a transaction.