* AB Inbev & SabMiller : Article in NY Post. SAB mgt considering to fight a potential ABI bid / Our take
- This article is likely to make the market nervous today about the ABI/SAB deal BUT our confidence in the deal remains intact. There is nothing surprising there.
- SABMiller is logically fighting its corner to get the best offer possible. But it will be very difficult for the mgt to justify to turn down an offer above the 4300p level. Remember SABMiller shares were below 3000p early
September.
- According to UK takeover rules, ABI has another week (14 Oct by 5pm) to make an offer. They can ask for an extension. It is quite common. Otherwise they must walk away for 6 months.
==> Both ABInbev and SABMiller need this deal. We still put a 90% chance on the deal.