AB InBev Raises SABMiller Takeover to $103.6 Billion

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By Jacob Maslow

Anheuser-Busch InBev NV(NYSE: BUD) has increased its takeover proposal for SABMiller Plc (LON: SAB)to $103.6 billion, or 67.4 billion pounds. Anheuser-Busch is hoping to negotiate with the London-based brewer to secure a deal that would forge the most dominant beer maker in the world.

Under the proposed deal, major stockholders would be offered a cash deal of 43.5 pounds per share. BevCo Ltd. and Altria Group Inc. are SABMiller’s two biggest investors and would receive38.88 pounds per share in stock and cash.

SABMiller is looking for AB InBev to pay about 45 pounds per share, claim sources close to the matter. The company has turned away three previous proposals, the most recent of which was made public on October 7. The two companies together control half of the profit pool in the industry.

SABMiller did not respond to the proposal immediately. On Wednesday, Jan du Plessis, chairman of the company, stated that AB InBev’s previous proposal had undervalued the company substantially. Carlos Brito, CEO of AB InBev, countered by stating that the offer was a price that the brewer could not achieve on its own anytime soon.

SABMiller climbed 1%during afternoon trading in London. AB InBev’s offer is 48% higher than the SABMiller’s closing price on the 14th of September. AB InBev’s shares remain unchanged at 98.31 euros.

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