Diageo/SABMiller Deal May Be Alternative to AB InBev: Barclays
2014-06-27 09:12:57.971 GMT
By Heather Burke
June 27 (Bloomberg) -- Diageo/SABMiller merger is a
“credible alternative” to a AB InBev/SABMiller deal, Barclays
says in note.
* Barclays: Pressure mounting for corporate activity in
beverages, focus on AB InBev/SABMiller
* May be increasing pressure on Diageo to be proactive
after shrs have lagged significantly
* Diageo has long focused on attractiveness of a Total
Beverage Alcohol (TBA) strategy, putting Guinness with
SABMiller’s global distribution may save >GBP400m,
additional rev. synergies
* Cautions mkt against above being heavily underweight in
either beer or liquor, keeps neutral view of beer and
tobacco sector
* Reiterates overweight on Diageo, equalweight on
SABMiller, equalweight on AB InBev (raises PT to EU84 vs
EU80)
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To contact the reporter on this story:
Heather Burke in London at +44-20-7673-2044 or
hburke2@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
2014-06-27 09:12:57.971 GMT
By Heather Burke
June 27 (Bloomberg) -- Diageo/SABMiller merger is a
“credible alternative” to a AB InBev/SABMiller deal, Barclays
says in note.
* Barclays: Pressure mounting for corporate activity in
beverages, focus on AB InBev/SABMiller
* May be increasing pressure on Diageo to be proactive
after shrs have lagged significantly
* Diageo has long focused on attractiveness of a Total
Beverage Alcohol (TBA) strategy, putting Guinness with
SABMiller’s global distribution may save >GBP400m,
additional rev. synergies
* Cautions mkt against above being heavily underweight in
either beer or liquor, keeps neutral view of beer and
tobacco sector
* Reiterates overweight on Diageo, equalweight on
SABMiller, equalweight on AB InBev (raises PT to EU84 vs
EU80)
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Heather Burke in London at +44-20-7673-2044 or
hburke2@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net