SABMiller set to launch Foster’s bid

SABMiller had hoped to rattle Foster’s takeover defence by casting doubt on information given at its annual results. The ruling allowed both sides to claim victory as it dismissed doubts over Foster’s financial forecasts but did force Foster’s to clarify its net debt position.

The Australian Takeovers Panel dismissed SABMiller’s claims yesterday that Foster’s had made “misleading and deceptive” forward-looking statements over future sales and earnings growth, but had some concerns over its net debt figure which were allayed by a Foster’s clarification.

Both parties accepted the panel’s decision and SABMiller is now likely to launch its bid document, which could come as early as next week, at the same cash price of A$4.90 a Foster’s share as originally proposed, sources close to the situation said.

“SABMiller is ready to go, so this ruling gives it the green light to formalise its bid as soon as possible at the same price,” said one source.

The publication of its bid document will trigger a takeover process which under Australian rules could take as little as seven weeks.

The London-based brewer has been turning more aggressive in its determination not to overpay, while Foster’s has rejected SABMiller’s approach on the grounds that it undervalues the comp- any.