All froth? Budweiser back in with improved $107bn offer for SAB

The owner of Budweiser is making a fresh attempt to clinch the biggest-ever foreign takeover of a British-based company with a fresh proposal to buy SABMiller valuing it at about $107bn (£70bn). It is being reported Anheuser-Busch InBev made a renewed overture to SABMiller’s board on Monday. The exact price that AB InBev is proposing to pay - in its fourth takeover approach to the owner of Grolsch and Peroni - was unclear on Monday lunchtime, although market sources indicated that it would be at around £43.50-a-share, or midway between a £43-a-share and £44-a-share range indicated in media reports at the weekend. That would value SABMiller at more than the £42.15-a-share rejected by SABMiller’s board last week as “substantially undervaluing” the company.

They have said the price is too low and we agree with them.

Dan Matjila, chief executive of Public Investment Corporation

The increased offer comes after the fourth largest shareholder in SABMiller on Monday rejected an earlier £65 billion takeover offer as too low. The offer has already been snubbed by the board of SABMiller, saying the £42.15 per share valuation was “very substantially” under par. “We have confidence in the board and we will rely on their judgement,” said Dan Matjila, chief executive of Public Investment Corporation (PIC), which owns about 3% of SABMiller. The fresh proposal comes just two days before a Takeover Panel deadline to lodge a formal bid, and follows a mixed response to its £42.15-a-share offer dismissed by SABMiller last week.

Business SABMiller