Anheuser-Busch InBev NV has discussed raising its takeover bid for SABMiller Plc to about £43 ($66) a share, still below the target company’s desired price and leaving the two sides at odds days before a deadline expires for a formal offer, people familiar with the discussions said.
U.K. brewer SABMiller wants AB InBev to pay a price closer to £45 a share, said the people, who asked not to be identified as the discussions aren’t public. SABMiller, which hasn’t entered formal talks with AB InBev because it views the proposed bid of £42.15 as too low, must agree to a deal or seek an extension by 5 p.m. on 14 October or else the transaction risks falling apart.
AB InBev has yet to agree on whether to raise its offer, one of the people said. Representatives from both companies declined to comment.
The back-and-forth follows a contentious week for the world’s two biggest brewers, who between them control half of the industry’s profit pool. SABMiller Chairman Jan du Plessis said Wednesday that AB InBev’s proposal “substantially” undervalues the company.
AB InBev Chief Executive Officer Carlos Brito countered by saying the board’s opposition lacks credibility and shareholders are being offered a price the brewer alone won’t achieve anytime soon.
News by Bloomberg, edited by ESM. To subscribe to ESM: The European Supermarket Magazine, click here.
