SABMiller's Revised Bid Could Prompt Foster's Change Of Heart

It is being suggested that SABMiller may be preparing a revised higher bid for Australian alcoholic drinks producer Foster's Group after both companies reached an impasse over SABMiller's previous offer of AUD4.9 (US$5.1) per share. According to Reuters, SABMiller is assembling a bank group for a syndicated loan to finance its fresh offer. Although Foster's has previously rejected SABMiller's AUD9.5bn (US$9.9bn) offer as too low, we believe the odds are increasingly stacked against Foster's, and we now see a greater likelihood of Foster's accepting the higher bid from SABMiller.

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