SABMiller shares gain on renewed talk that AB InBev is working on cash bid - report
SABMiller’s [LON:SAB] share price gained 1.5% yesterday, 3 September on renewed speculation that listed Belgian rival Anheuser-Busch InBev [EBR:ABI] is preparing a knockout cash offer for the FTSE-100 brewing company, The Daily Mail reported. The newspaper’s market report section did not cite a source for the rumour.
Analysts at Investec doubted the bid speculation, slapping a sell recommendation on SABMiller shares and reducing its target valuation for the stock to 2900p, the article noted.
SABMiller shares closed at 3039p in London yesterday, giving the company a market capitalisation of GBP 49.16bn (EUR 67.32bn).
Background:
A Sunday Times report on 30 August said SABMiller had hired the investment bank Robey Warshaw to advise on M&A strategy. The article noted persistent talk of an offer from AB InBev, and that the Belgian brewing group has backing from 3G Capital Partners.
Daily Mail