SABMiller rejects takeover bid

Market leader Anheuser-Busch InBev NV went public with a takeover proposal for SABMiller PLC that valued the company at up to $104 billion after winning over its biggest shareholder, but the world’s No. 2 brewer said the price was too low.
A combination of the two companies would create a beer behemoth with unrivaled scale and reach, bringing brands like Budweiser and Stella Artois, which have been languishing in key markets, into new corners of the globe.
The deal faces many hurdles, from likely antitrust scrutiny to tensions between SABMiller’s two largest shareholders, which together control 41% of the company.
U.S. tobacco group Altria Group Inc., the maker of Marlboro cigarettes, owns more than 25% of the brewer and has said it would support a deal at or above AB InBev’s proposed price of £42.15 ($64.2) a share—a 44% premium over SABMiller’s Sept. 14 closing price, the day media speculation about a potential takeover began to circulate.
But Altria’s three representatives on SABMiller’s 16-member board were the only ones not rejecting the proposal Wednesday, which the board said “still very substantially undervalues SABMiller, its unique and unmatched footprint, and its stand-alone prospects.” – The Wall Street Journal