Date
22 January 2017
AB Inbev will improve its offer from rival brewer SAB Miller, but is also prepared to walk away if the latter doesn't make some concessions, reports say. Photo: Reuters
AB Inbev will improve its offer from rival brewer SAB Miller, but is also prepared to walk away if the latter doesn't make some concessions, reports say. Photo: Reuters

AB InBev may raise SABMiller bid further

Anheuser-Busch InBev may raise its takeover offer for rival brewer SABMiller ahead of a Wednesday bid deadline, Reuters reported, citing a source familiar with the matter.

The company could improve the offer to the 43-44 pounds per share range after its previous proposals were rejected by SABMiller as being inadequate, the report said.

SAB Miller last week turned down a revised 42.15 pounds per share offer from AB Inbev, which would have given the former a valuation of about US$104 billion.

A source told Reuters that AB Inbev could boost the per-share offer to up to 44 pounds as it confronts an October 14 deadline for a formal bid.

IF SAB Miller doesn’t make some concessions, AB Inbev is prepared to walk away from the deal, according to the report.

AB InBev Chief Executive Carlos Brito, who went public with the most recent bid last week after getting frustrated by SABMiller’s response, had earlier called the 42.15 price “full”.

But he never called it final, leaving open the possibility of an improved offer.

SABMiller on Friday announced an accelerated cost-savings drive, which analysts saw as a defensive move to drive up the offer price.

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