From the FT: SABMiller board divided over AB InBev’s £65bn takeover proposal

In a statement announcing the approach, AB InBev said it had already made two private cash proposals to the SABMiller board: The first at 38 per share and the second at 40 a share.

AB InBev, the world’s largest brewer, is likely to raise its takeover proposal for SABMiller Plc (LON:SAB) to around £45 a share, according to Nomura.

If AB InBev can complete its purchase of SABMiller, it would create a behemoth brewer that owns almost half the world’s top beers.

“AB InBev is disappointed that the Board of SABMiller has rejected both of these prior approaches without any meaningful engagement”, AB InBev said.

“We’re in SAB largely because we thought there was a chance that this could happen”, Maxwell said in a phone interview. Brito said in a statement on Thursday.

The report was published early, at a time when Anheuser-Busch InBev revealed in mid-September that it had been in contact with SABMiller, although a formal offer has yet to be made for a merger between the 2 industry world leaders. Du Plessis has been involved in fighting against several takeover bids at other companies in order to get a better price. How long will it be before shareholders see a value of over £42 [a share] in the absence of an offer from AB InBev? “SABMiller clearly has a figure in mind and it is going to take AB InBev digging out its wallet and taking on a bit more debt to win SABMiller’s hand”. Importantly, Altria, which is SABMiller’s biggest shareholder with a 27% stake in the firm, has publicly stated that it supported the revised proposal. But by the afternoon SABMiller’s Board, excluding the directors nominated by Altria Group, had unanimously rejected the proposal. The combined company would have annual revenues of around $64 billion.

A-B InBev is known for its cost-cutting following acquisitions.

Carlos Brito, CEO of AB InBev, this morning said SABMiller’s board “has refused to meaningfully engage.” “This deal is about growth”, he said.

AB InBev’s portfolio of brands includes Budweiser, Corona, Beck’s, Stella Artois, Leffe, and Hoegaarden and Skol.

SAB Miller has also tapped into the craft beer scene, buying one of the UK’s most successful independents, London’s Meantime Brewing Company, in May.

Heineken, the next biggest player, has 9 percent global market share.

SAB Miller called on the United Kingdom mergers and takeover regulator to intervene yesterday when Anheuser Busch either incorrectly, or prematurely suggested that they expected to have the family’s support. Chinese authorities could require the brewer to exit SABMiller’s joint venture with China Resources Enterprise Ltd., which has 23 percent of the market and produces the top-selling Snow brand.