21st June 2011
Fosters rejected the deal with the following statement.
"The board of Foster's believes that the proposal significantly undervalues the company in the context of a change of control and, as such, it does not intend to take any further action in relation to it."
Here from the Wall Street Journal is the SABMiller statement in full, showing it does not share that sentiment.
The key paragraph below suggests the US firm, the world's second largest drinks company, may continue to pursue a deal if possible.
"SABMiller believes its proposal, which represents an enterprise value for Foster's of A$11.2 billion() and a F11 forecast EV/EBITDA() multiple of 12.5 times, is attractive to Foster's shareholders.
The price represents a significant premium of 14.5% to the trading price of Foster's of A$4.28 as at 2 June 2011 (being the closing price prior to the most recent round of speculation of a bid for the company) and with a significant premium of 18.4% to the adjusted closing price() of Foster's shares as at 25 May 2010 of A$4.14 (being the adjusted last closing price prior to the announcement of Foster's intention to evaluate a demerger)."