SABMiller to Renew Foster’s Bid
SABMiller is reported to be planning to renew its efforts to acquire Australian brewer Foster’s. Foster’s is due to report a major fall in brewing profits when it announces its full year results on August 23rd, leading to a further decline in its share price.
SABMiller made its initial offer of A$11.2b (Eur8.1b) in June but with no rival bid emerging, the Austalian brewer’s share price has been tumbling, making SABMiller’s bid increasingly attractive. SABMiller is expected to increase the pressure on the Foster’s board to open talks on its current bid or a slightly increased one.
According to Reuters, analysts initially expected that SABMiller would have to pay up to A$5.20-A$5.40 a share to succeed, but now believe that A$4.90-5.10 would be sufficient.
