A BUSCH MERGER FIGHT IS BREWING

The King of Beers is desperately trying to retain its crown.

Brewing giant Anheuser-Busch, faced with a stagnant domestic beer market, has been reaching out to international brewing companies to discuss the possibility of a merger, according to sources in the beer industry.

But any deal between the maker of Budweiser and another large brewer is unlikely to happen soon because of issues with the families that control the companies.

Shares of Anheuser-Busch, headed by August Busch IV, jumped 3 percent yesterday to $51.75 after a Brazilian newspaper reported that the company was in merger talks with InBev, maker of Stella Artois and Beck’s.

Shares of Belgium-based InBev also surged over 4 percent yesterday, hitting a record high, on the news.

Newspaper, Valor Economico said talks between InBev and Anheuser-Busch were still at a preliminary stage, citing a source on the InBev board. The paper also cited an unnamed banker as saying a merger between the two had “big chances of happening one day.”

Other European brewers also rose on the report, with Heineken, Carlsberg and SABMiller all climbing over 2 percent.

Both InBev and Anheuser-Busch declined to comment on the possibility of a deal.

Anheuser-Busch, which has a dominant share of the beer market in the U.S., is struggling to expand into fast-growing overseas markets such as India and Latin America.

InBev, which recently surpassed Anheuser-Busch’s market capitalization, has been on a tear since merging with Brazil-based Ambev in 2004.