Filed under: Deals, Rumors, Berkshire Hathaway (BRK.A), Anheuser-Busch Cos (BUD)

Good news for shareholders of Anheuser-Busch Cos. (NYSE: BUD). Shares of the world’s second-largest brewer are surging over 8% to $56.81 on a report that it might receive a bid worth $46 billion from InBev NV.

Just last week I moped about the lack of new developments in the reported talks between Anheuser-Busch and InBev, saying that as the industry is showing signs of consolidation, BUD seems a tiny lonely. Well, I may have spoken too soon considering today’s reports.

According to Alphaville, the Financial Times‘ blog, InBev, the maker of Stella Artois, is working on a $46 billion bid, worth $65 a share, for Anheuser-Busch. The sources were not identified, but they indicated “that while extensive work had been carried out on the transaction, InBev was ‘not about to push the button.’” There were no official comments.

If the deal is carried out, the second-largest shareholder, Warren Buffett’s Berkshire Hathaway Inc. (NYSE: BRK.A), could stand to profit from its 5% stake. Buffett, profit? Nah! Barclay’s, by the way, is the biggest stakeholder.

If the companies indeed join forces, they would cover the globe between them, pump out around 350 million hectolitres of beer and other beverages annually. Annual revenues would be around $20 billion and have a market capitalization close to $100 billion.

Since the first approach last October, InBev believes Mr Busch would be more willing to deal as pressure from shareholders have been increasing. And financing, you might ask, in this climate? Well, about $50 billion has been provisionally arranged with JPMorgan Chase & Co. and Banco Santander SA.

Now the question is, do we purchase BUD shares at $57, hoping to cash in at $65?

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Filed under: Deals, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Blockbuster Inc ‘A’ (BBI), Circuit City Stores (CC)

Yahoo! Inc. (NASDAQ: YHOO) Chief Executive Jerry Yang is bound to cry “uncle” sooner rather than later.

Pressure is mounting on the co-founder of the internet portal to do something — anything — to boost Yahoo’s moribund share price. Billionaire activist investor Carl Icahn is leading a mutiny among shareholders disappointed that the company couldn’t figure out a way to reach an agreement on a deal with Microsoft Corp. (NASDAQ: MSFT). Display advertising is coming under pressure as advertisers shift spending to search or demand steep rate cuts. Board member Edward Kozel today announced his resignation, another indication of management’s growing isolation.

Yahoo management is clearly hunkering down. This day, comes word that the company is delaying its annual meeting from July 3 to the end of July. Is that enough time to reach an agreement with Microsoft or a search deal with Google Inc. (NASDAQ: GOOG)? Who knows? But you can bet that the meeting won’t occur until there’s some “good news” to report.

Meanwhile, Microsoft Chief Executive Steve Ballmer told a technology conference in Moscow that the Yahoo acquisition wasn’t “strategic.” Hmm, then why bother doing it? Clearly, Ballmer is posturing to get a better deal with Yahoo. Having Icahn on his side certainly helps.

As for Icahn’s threatened proxy fight, the key word here is “threat.” The last thing that Icahn wants to do is actually run a company. Operations just aren’t his thing. But as he showed with Blockbuster Inc. (NYSE: BBI), Icahn is not afraid to wage proxy contests and win them. In Blockbuster’s case, he trounced management. Whether that’s a Pyrrhic victory remains to be seen. Shares of Blockbuster have tumbled more than 22% this year and investors are skeptical that buying Circuit City Stores Inc. (NASDAQ: CC) will boost the video-rental firm’s lagging fortunes.

So,Yahoo shareholders should hope that Yahoo figures out a way to make Icahn and his allies happy before things get much worse.

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Filed under: Before the bell, Analyst reports, Analyst upgrades and downgrades, Deals, Apple Inc (AAPL), Dell (DELL), General Motors (GM), Carnival Corp (CCL), Sun Microsystems (JAVA), US Airways Group (LCC), UAL Corp (UAUA)

Before the bell: As oil resumes rally, stocks set to decline

Workers at U.S. auto parts maker American Axle & Manufacturing Holdings (NYSE: AXL) are set to return to work next week after approving a new four-year contract that contains steep pay cuts and other concessions. The three-months strike crippled crippled production at a General Motors (NYSE: GM) plant.

Six Flags Inc. (NYSE: SIX) said it will cut ticket prices by $10 at its St. Louis park as customers are cash strapped these days due to the tightening economic conditions and rising prices for everyday commodities. Meanwhile, Fitch Ratings downgraded some of Six Flags Inc.’s ratings and put them on Ratings Watch Negative due to a proposed notes exchange.

UAL Corp. (NYSE: UAUA) unit United Airlines and US Airlines Group (NYSE: LCC) are postponing the launch of new China routes because of high fuel costs after gaining approval for this coveted route only a few months ago.

Morgan Stanley downgraded Royal Caribbean Cruises (NYSE: RCL) to Equal-Weight from Overweight but kept rival Carnival Cruise Line (NYSE: CCL) at Overweight saying RCL’s risks are greater given lower margins and higher leverage.

Merrill Lynch raised its price target on Apple (NASDAQ: AAPL) from $186 to $215. AAPL shares are responding, trading up over 2.7% in premarket trading.

Also, Morgan Stanley downgraded Sun Microsystems Inc (NASDAQ: JAVA) to Underweight and upgraded Dell Inc. (NASDAQ: DELL) to Overweight, saying “the server market is entering a new cycle that will drive the market to lower-priced systems.” Dell will benefit from the shift in trend. DELL shares are up 2.7% while JAVA’s down 1.7% in premarket trading.

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Filed under: Before the bell, Earnings reports, Deals, Microsoft (MSFT), Yahoo! (YHOO), Market matters, Halliburton (HAL), Gap Inc (GPS), Economic data, Oil, Housing

Stock futures were lower Friday morning as one again crude prices resumed their seemingly endless move upward. The market might also be agitated about further data upcoming about the housing market.

On Thursday, U.S. stocks ended higher two days of heavy losses as finally crude-oil futures retreated, giving some relief to the markets. The Dow industrials finished 24 points higher, or 0.19%, the Nasdaq Composite rose 16 points, or 0.67%, and the S&P 500 added 3 points, or 0.26%.

Only one economic report is due out today. April existing-home sales will be released at 10 a.m. EDT, and economists expect it to decline yet again.

Oil prices rose Friday, as supply concerns once again took center stage especially with growing global demand. After tumbling around $4 overnight from a record above $135 a barrel, light, sweet crude for June delivery was up $1.29 to $132.10 a barrel.

With the long weekend just around the corner, trading might be lighter than usual today. U.S. markets will be closed Monday for Memorial Day.

Despite the market softening somewhat lately, deal news have been increasing. This day, we hear that Halliburton (NYSE: HAL) has made a conditional bid of $3.36 billion for Expro International Group PLC (OTC: EXPRF), the British oil services firm. The all-cash proposal is about 6% higher than the previous one.

Meanwhile, Yahoo Inc. (NASDAQ: YHOO) on Thursday postponed its annual meeting from July 3 to late July. No doubt, Yahoo!’s board, afraid of losing control following Carl Icahn’s call to replace the board. Yahoo’s board might use the time to either negotiate a deal with Microsoft Corp. (NASDAQ: MSFT), a partnership with another company, or prepare its defense. This the second time Yahoo has postponed its annual meeting.

Gap Inc. (NYSE: GPS) reported results after the close Thursday, saying that while revenue dropped 5%, it managed to still boost its first-quarter profit by 40% by managing inventory and slicing costs. Gap stated that it earned $249 million, or 34 cents per share on $3.38 billion in revenue. It beat estimates of 30 cents per share but missed the expected $3.42 billion in revenue. GPS shares traded 2.5% higher in after-hours.

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