The board of Foster’s Group has advised its shareholders to turn down the £6.2bn bid tabled by SAB Miller earlier this week.
Bosses at the Aussie brewer said the AUD4.90 a share offer “significantly undervalues the company in the context of a change of control”.
“Foster’s, together with its advisers, has carefully considered the proposed offer and intends to unanimously recommend shareholders reject the offer,” the company said in a statement today.
The Aussie brewer urged shareholders to “take no action and ignore all documents and communications from SABMiller in relation to its proposed offer”.
SAB Miller took its approach directly to shareholders this week after an earlier bid – valuing the target at the same level – was rebuffed in June by the Foster’s board. Analysts have suggested SAB Miller may have to increase its offer significantly to persuade Foster’s shareholders to sell.
SAB Miller goes hostile with Foster’s bid (17 August 2011)
SAB Miller to push on with Foster’s bid (25 June 2011)