SABMiller goes hostile on Foster's bid at same price

Hostile: SABMiller, owner of such popular brands as Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch, has bypassed the board and appealed direct to shareholders

11 April 2012

SABMiller, the London-based brewer of Peroni and Grolsch, played hardball today by going hostile with its takeover bid for Australia's Foster's without raising its earlier offer.

The A$4.90 a share bid values Foster's at £6.1 billion and is actually at a discount to the Aussie brewer's closing share price this morning of A$4.96.

SABMiller first made the bid in June only to have it rejected immediately by Foster's.

Today the global brewer said: "SABMiller believes that the proposal put to the Foster's board is attractive and should be put to Foster's shareholders. As there has been no willingness to engage in relation to SABMiller's proposal on the part of the Foster's board, SABMiller has decided to make an offer to Foster's shareholders directly."

Analysts were surprised by the hostile move because they had expected SABMiller to wait until Foster's publishes what are likely to be pretty dire results next week.

Banks and other financial institutions have backed a massive loan raised by SABMiller to fund the takeover.

SABMiller is the world's second-biggest brewer by volume. Foster's is Australia's biggest brewer with seven of the top 10 beer brands.