Foster's Group is expected to sweeten its shareholders with a cash handout in a bid to stave off a hostile bid from SABMiller. 

The Australian brewer will use its annual results tomorrow to announce either a one-off payment or bumper dividends over the next two years, according to the Sunday Times. 

SABMiller tabled a £6.2bn hostile bid for Foster's last week, but Foster's said the AUD4.90 a share offer "significantly undervalues the company in the context of a change of control". 

It has since urged shareholders to "take no action and ignore all documents and communications from SABMiller in relation to its proposed offer". 

Meanwhile, SABMiller has been discreetly buying up blocks of shares in Foster's in recent days, according to the Sunday Telegraph. 

It is understood to have spent £120m in shares, although the stake remains below disclosable levels.

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