Foster's: AUS$9.5bn offer small beer

Australian brewer Foster’s Group has rejected a AUS$9.5bn cash takeover offer from London-based beer-maker SABMiller, saying the bid undervalues the company.

Foster’s announcement came today after beverages group Coca-Cola Amatil (CCA) amended the terms of a brewing joint-venture with SABMiller, which enabled SABMiller to bid for Foster’s.

SABMiller, the world’s second-biggest brewer by volume, made an unsolicited, non-binding and conditional proposal of AUS$4.90 a share in cash for Foster’s – an 8% premium on Foster’s last trading price of AUS$4.53.