Foster’s once again rejects SABMiller bid

Foster's Group, Australia's largest brewer, once again rejected SABMiller's hostile $10-billion takeover bid, claiming that the offer significantly undervalued the company.

Following a rejection from Foster's in June after it made a A$4.90 a share offer, London and Johannesburg-listed SABMiller yesterday took its offer directly to Foster's shareholders. (See: SABMiller takes its $10-bn bid to Foster's shareholders)

Taking the bid to shareholders has come as no surprise as Foster's refused to enter into discussions for two months even though no competing bids have been forthcoming.

''The board of Melbourne-based Foster's has shown ''no willingness to engage,'' and "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," SABMiller had said in a statement yesterday.

The Melbourne-based brewer today retorted by saying, ''The board of Foster's, together with its advisers, has carefully considered the proposed offer and intends to unanimously recommend shareholders reject the offer.''

"The board of Foster's reiterates its belief that an offer price of $4.90 per share significantly undervalues the company in the context of a change of control."