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AB InBev appeals to SABMiller shareholders

by , 09 October 2015

After SABMiller rejected Anheuser-Busch InBev's third informal offer, the Belgium brewer is now appealing directly to SABMiller's shareholders.

AB InBev has criticised SABMiller's rejection of the offer and is trying to show SABMiller shareholders there is great value in the deal for them.

Let's take a closer look at what's going on…

AB InBev wants shareholders to push SABMiller’s board to accept its latest offer

On Wednesday’, SABMiller [JSE:SAB] rejected the third offer by AB InBev at £42.15 a share. This led AB InBev to fight back.

AB InBev has now said the offer price is “higher than the London-based brewer is likely to achieve on its own,” reports Fin24.

This move by AB InBev appears to stem from Altria’s intervention in the deal, says IOL. The US tobacco company, which owns 27% of SABMiller’s shares, told the brewer “to agree terms”.

AB InBev’s appeal to SABMiller shareholders has all the tell-tale signs of a hostile takeover, where a company approaches shareholders directly to force the board to accept a bid.

Carlos Brito, the CEO of AB InBev, said if shareholders agree with its latest offer, “they should voice their views and should not allow the board of SABMiller to frustrate this process and let this opportunity slip away,” notes the BBC.

AB InBev criticise SABMiller’s rejection of its latest offer

With Altria behind the deal and the hefty premium to SABMiller’s share price, AB InBev says that SABMiller’s rejection “lacks credibility,” says BDLive.

So far SABMiller has “declined to comment” on the statement from AB InBev, notes Fin24. But on Wednesday, SABMiller said the latest offer “substantially undervalues” it.

AB InBev has until next Wednesday “to make a formal bid,” adds BDLive. This will only change if SABMiller “agrees to continue talks and applies for an extension”.

Time will tell what unfolds in the run up to Wednesday.

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AB InBev appeals to SABMiller shareholders
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