InBev NV’s bid for Anheuser-Busch Cos. raises so many issues that it’s easy to lose focus on the most important one: the debt burden associated with the deal.

To pay for what would be the largest all-cash takeover on record, InBev has arranged to borrow at least $40 billion from eight European and U.S. banks. That works out to a minimum of $6.35 in debt for each dollar of equity, based solely on the offer price of $46.3 billion.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]