Brewer plans hostile Foster’s bid

Its proposed price of 4.90 Australian dollars a share, which SABMiller will put direct to Foster’s shareholders, is at the same level as the approach rejected by the Melbourne-based firm’s board in June.

SABMiller is the world’s second-biggest brewer by volume and has global brands including Pilsner Urquell, Peroni Nastro Azzurro and Miller Genuine Draft.

It is interested in targeting Australia’s profitable beer market, in which Foster’s is the leading brewer with seven of the top 10 beer brands, as well as a national distribution network and scale production.

SABMiller said it believed the proposal was attractive and should be put to Foster’s shareholders.

It added today: “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.”

The offer from SABMiller is below today’s closing price for Foster’s shares of 4.96 Australian dollars.

Foster’s has become the subject of takeover interest after it sold off its under-performing wine business into a separately listed company in May.

Analysts have said that other global brewers may be interested in Foster’s, which owns leading brands including VB, Carlton Draught and Corona.