Opening View: American International Group May See Significant Subprime-Related Losses

As expected, Anheuser-Busch (BUD: sentiment, chart, options) formally rejected Belgian brewer InBev's $65-per-share bid, calling the offer "financially inadequate." The Budweiser maker revealed that its board unanimously voted to reject the offer, stating that the proposal "significantly undervalues the unique assets and prospects" of the company.

Bank of America (BAC: sentiment, chart, options) was making headlines in afternoon trading yesterday, after reporting plans to cut about 7,500 positions after acquiring Countrywide Financial ( CFC: sentiment, chart, options) – slated for close on July 1. The lay-offs are set to begin in the third quarter. The company stated, "Final decisions on all specific associate groups and locations have not been made." The shares of BAC, which closed at $24.81 yesterday, are poised to continue their trek lower in early activity.

Elsewhere, American International Group (AIG: sentiment, chart, options) plans to absorb up to $5 billion on losses of sales of investments from about 12 insurance units affected by the subprime-mortgage crisis, Bloomberg News reported. The insurer had originally forecast $500 million in investment-sales losses. Ahead of the bell, the security is set to open moderately lower than its close of $28.09 yesterday.

Opening View: American International Group May See Significant Subprime-Related Losses