Belgian brewer offers to buy U.S. beer king

Anheuser-Busch Cos., the nation's biggest brewery, received a $46 billion buyout offer Wednesday from a Belgian brewer that might be too good to refuse.

The maker of Budweiser beer disclosed late Wednesday that InBev SA, whose brands include Beck's and Stella Artois, delivered an unsolicited all-cash bid of $65 a share. It's unclear whether senior Anheuser-Busch executives think the deal makes sense, but shareholders may be drawn to the offer that represents a sizable premium over the company's closing price of $58.35 Wednesday.

If the deal goes through, it would create the world's largest beer company and mark just the latest phase of consolidation in a global brewing industry that is facing rising ingredient costs and stale demand in the United States.

Commodities

Rains, flooding drive up contract price for corn

Corn prices on Wednesday surged above $7 a bushel for the first time, pushed higher by Midwest rains that have flooded fields and left farmers with the prospect of a significantly smaller crop.

Corn's jump means more headaches for consumers, who can expect higher beef, pork and chicken prices as livestock owners are forced to thin their herds and flocks to cope with higher costs for corn-based animal feed.

Rain and flooding in Iowa, Indiana, Wisconsin and other Midwestern states have drenched corn fields and severely delayed spring planting.

Concerns about more Midwest flooding pushed corn prices to a record $7.0325 a bushel for the July contract traded on the Chicago Board of Trade up 30 cents. It was the first time corn crossed the $7 threshold. Prices closed at $6.7325 on Tuesday.

Union dispute

Northwest pilots harbor bad blood about merger

In the wake of failed attempts to reach a joint agreement with Delta and Northwest pilots before the airlines' merger announcement, discord is growing between Northwest pilots and their national union, which also represents Delta pilots.

The Delta-Northwest Airlines merger was announced in April with a proposed deal for Delta's roughly 7,000 pilots but no deal with Northwest's 5,000. The two pilot groups had reached an impasse over how to integrate their seniority lists.

If the merger is granted regulatory approval, it is expected to close by the end of the year.

But Northwest pilots have come into conflict with the head of the Air Line Pilots Association International, because the proposed deal includes annual pay raises and an equity stake for Delta pilots. Both unions are separate units of ALPA.

Office supplies

Staples lands Corporate Express for $2.7 billion

Staples Inc.'s four-month campaign to acquire Corporate Express NV finally yielded an agreement Wednesday, a $2.7 billion deal that Staples hopes will put further distance between itself and U.S. rivals Office Depot and OfficeMax. Its two rivals combined would be smaller than Staples once the deal closes.

With U.S. retail sales of office supplies slumping, Staples also hopes to expand in the more profitable business of delivering office supplies to corporate customers - Corporate Express' strength - and build off the Netherlands-based company's clout in Europe.

The agreement thwarts a competing deal Corporate Express had reached three weeks ago to acquire France's Lyreco SAS, which is now expected to receive a $46 million breakup fee from Corporate Express.

Beige book report

U.S. economy embattled, but not in desperate shape

A new report from the Federal Reserve paints a portrait of a U.S. economy under pressure from almost every direction: Growth is slow, consumers and businesses are stressed by high fuel prices, and banks are more reluctant to lend money.

Three of the Fed's 12 regions reported economic activity that was ''softer, weaker, or lower,'' while four reported ''slower, sluggish, or modest'' growth. The remaining districts, including the one covering Utah, described their regional economies as little changed in recent weeks.

The Fed report suggests that the experience of ordinary businesses matches up with recent economic data, which has showed an economy that is not in desperate shape, but in which Americans are facing multiple challenges at once.

The battered stock market fell even further after the beige book was released at 2 p.m.