“A family feud has spilled into the boardroom of Molson Inc., prompting several board members to not stand for re-election and touching off speculation that the Canadian beer giant could merge with a competitor or become takeover prey, according to people familiar with the situation,” writes Robert Frank in today’s Wall Street Journal.

“At least five prominent board members, including Deputy Chairman Ian Molson, have decided not to stand for re-election at the company’s annual meeting Tuesday, the people familiar with the situation say. The moves follow a bitter boardroom split between Eric Molson, the brewer’s longtime chairman, and Ian Molson, a distant cousin of Eric who helped engineer a turnaround of the company.”

“Other board members declining to run for re-election include Matthew W. Barrett, chief executive of British bank Barclays PLC, and Donald G. Drapkin, vice chairman of New York-based MacAndrews & Forbes Holdings Inc.”

“Molson’s troubles come amid a rapid escalation in the global beer wars, with the biggest brewing giants swallowing up competitors and branching into new countries. SABMiller PLC lost out in a battle with Anheuser-Busch Cos. for China’s Harbin Brewery, while the two companies are locked in a fierce fight over the light-beer market in the U.S. Belgium’s Interbrew recently merged with Brazil’s Ambev, ballooning in size.”

“Molson, one of Canada’s most storied companies and the oldest brewer in North America, dominates the Canadian beer market. Despite its local popularity, Molson has struggled to expand beyond its borders.”

“The competitive pressures and the recent leadership turmoil have touched off widespread takeover interest in the company from other brewers. People familiar with the situation say Molson has held informal discussions with Adolph Coors Co., although it isn’t clear if the talks are continuing. A deal between Colorado-based Coors and Molson could be tough to structure. The companies are roughly equal in market size and tightly controlled by two well-known families.”

“A Molson spokeswoman said the board members aren’t running for re-election for ‘personal reasons.’ She declined to comment on whether there is a leadership dispute at Molson. She added that the company has decided to reduce its board to 10 from 15 members for governance reasons. Responding to takeover talk, she said Molson is considering various strategic alternatives and is always ‘keeping its ear to the ground to what is happening in the industry.’ “

“A spokeswoman for Ian Molson said he declined to comment.”