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| SABMiller to go hostile with $10bn Foster's bid | SABMiller to go hostile with $10bn Foster's bid |
| (about 2 hours later) | |
| Brewer SABMiller has announced plans to make a second bid to take over Foster's Group, Australia's biggest brewer, this time direct to shareholders. | Brewer SABMiller has announced plans to make a second bid to take over Foster's Group, Australia's biggest brewer, this time direct to shareholders. |
| The board of Foster's rejected SAB's initial 9.5bn Australian dollars ($10bn; £6.1bn) offer in June, saying it was too low. | The board of Foster's rejected SAB's initial 9.5bn Australian dollars ($10bn; £6.1bn) offer in June, saying it was too low. |
| SAB, which owns brands such as Grolsch and Peroni, said the bid was attractive and should be put to shareholders. | SAB, which owns brands such as Grolsch and Peroni, said the bid was attractive and should be put to shareholders. |
| Foster's has been the subject of takeover rumours since last year. | Foster's has been the subject of takeover rumours since last year. |
| SABMiller is one of the most successful companies ever to be launched in Africa. Founded in South Africa in 1895, its Castle beer came to dominate the local market. | |
| But until the end of apartheid, it was really only a southern African organisation. It had generated large sums of money, which it had used to build up a many interests - including hotels, shoe manufacturing and windscreen production. | |
| In the 1990s it changed tack. Its non-brewing assets were sold and the company moved its headquarters to London. SABMiller went on a spending spree - buying up breweries in Latin America, Eastern Europe and the Far East. | |
| Even before the Foster's bid, SABMiller was the second largest brewing company in the world, with 70,000 employees. | |
| But like a number of other companies that started in South Africa, the company has only a residual relationship with its origins. | |
| "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," the UK-based company said in a statement. | "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," the UK-based company said in a statement. |
| There have been talks of a takeover of Foster's since it announced plans to break up the company into two parts last year. | |
| The brewer spun-off its troubled wine business, which had been seen as deterring potential suitors. | The brewer spun-off its troubled wine business, which had been seen as deterring potential suitors. |
| Foster's beer operations and the wine business, Treasury Wine, were listed separately in May. | Foster's beer operations and the wine business, Treasury Wine, were listed separately in May. |
| Any purchase of Foster's by SAB will not include the Foster's lager brand in the UK and Europe, where it is owned by Heineken. | Any purchase of Foster's by SAB will not include the Foster's lager brand in the UK and Europe, where it is owned by Heineken. |
| SABMiller shares were 1.2% higher in early trading in London at 2143 pence, before dropping back slightly at lunchtime. | |
| Its bid values Foster's at $4.90 per share. The Australian company's shares closed at $4.96 on Wednesday. | |
| Foster's shares peaked at $5.21 in June after it rejected SABMiller's initial bid approach. | |
| SAB must gain the acceptance of at least 90% of Foster's shareholders for the takeover attempt to succeed. |