SABMiller Reportedly Rejects AB InBev Takeover Offer

(RTTNews) - British brewer SABMiller Plc. (SAB.L, SABMRY.PK) rejected an informal takeover offer from Belgian brewer Anheuser-Busch InBev NV, known as AB InBev (BUD, AHBIF.PK) of about 66.4 billion pounds or $100 billion that it considered too low, Bloomberg reported citing people familiar with the matter.

The initial proposal to the brewer of Peroni and Foster's beer, made last week, was worth slightly over 40 pounds per share, while its executives and some shareholders regard a deal at closer to 45 pounds as representing a fair value. A deal at 45 pounds per share would value SABMiller at about 73 billion pounds, the report said.

SABMiller reportedly communicated to AB InBev the terms at which it would be willing to negotiate after the rejection. No final decision has been made on a potential formal offer, and it's possible the Belgian producer of Budweiser and Stella Artois may walk away from a deal.

In mid-September, SABMiller confirmed that Budweiser owner AB InBev informed it intends to make a proposal to acquire SABMiller. However, the company added that it had not yet received any proposal and has no further details about the terms of any such proposal.

SABMiller also noted that by not later than October 14, AB InBev must either announce a firm intention to make an offer for the company or announce that it does not intend to make an offer.

AB InBev then confirmed separately that it made an approach to SABMiller's board regarding a combination of the two companies. AB InBev said its intention is to work with SABMiller's Board toward a recommended transaction.