InBev has been in the throes of a move to oust a section of the A-B board and replace it with its own as it seeks to consolidate its takeover bid, but A-B is seeking an injunction against the action. In its suit filed in the US District Court for the Eastern District of Missouri, A-B said InBev's plans were "illegal" in that it was trying to buy A-B at "a bargain price" through "deceptive marketing". Fully informed A-B said it had filed the lawsuit because it wanted its shareholders to be fully informed about InBev's unsolicited proposal to acquire A-B. A-B's assets include 50 percent of Mexico's Grupo Modelo and 27 percent of China's Tsingtao Brewery. The suit alleges InBev made "false and misleading statements" about its $65-a-share offer for A-B. A-B bases this allegation on the fact InBev assured its shareholders it had "fully committed financing" when this was not the case. "No group of financial institutions would unconditionally commit $40 billion to a borrower to pursue a hostile acquisition given the state of the credit markets today," A-B said in its submission to the court. Cuban crisis? A-B also said the fact InBev has arrangements in Cuba that include brewing Beck's beer precluded it from establishing a headquarters in the US, because of conditions of the trade embargo the US has imposed on the communist state. Under Cuban Assets Control Regulations, US operations are prohibited from "unlicensed" transactions with Cuba without US government approval. A-B says InBev failed to relate this state of affairs to its shareholders. InBev's Cuban business, Bucanero SA, has more than 570 full-time employees and a 44 percent market share of beer sales on the island. Its brands include Bucanero, Cristal and Mayabe. Analysts expect InBev will sell or restructure its Cuban operation if it becomes a stumbling block in its attempt to buy A-B. Bucanero accounts for only 0.5 per cent of InBev's turnover. A-B is the biggest brewer in the US. Its products which include its flagship brand, Budweiser, account for 48.5 per cent of domestic beer sales. InBev legal actions A-B's legal move comes after InBev threatened legal action if its bid was thwarted by A-B. In a letter on its website last week, InBev said if communications between the two brewers collapsed it would consider pursuing its own court action. Indeed InBev filed a suit in Delaware to remind A-B shareholders of their right to remove its board of directors if it so wished. "Under Anheuser-Busch's charter and Delaware law it is clear that the eight directors elected after 2006, who together constitute a majority of the Anheuser-Busch Board, are subject to removal and replacement without cause through the written consent procedure," said InBev chief executive officer, Carlos Brito. He added: "The purpose of the filing is merely to confirm InBev's strong belief that the five directors elected in 2006 may also be removed and replaced through that same mechanism."