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Foster's accepts SABMiller takeover bid

Published:  21 September, 2011

SABMiller has raised its takeover bid to Foster's which has won the backing of the Australian firm's board, a week after its offer of $4.90 was rejected.

The Grolsh,  Pilsner Urquell, Peroni Nastro Azzurro and Miller Genuine Draft brand owner, has since increased its offer price by 13% to $5.40 Australian dollars per share.

Foster's chairman David Crawford, said: "This is a compelling proposal from SABMiller and represents the value inherent in this iconic Australian company and in its brands and people."

He added: "The board's primary concern and continues to be to act in the best interests of Foster's shareholders and maximise value for them."

Foster's, which owns leading brands including VB, Carlton Draught and Corona, previously de-merged its under-performing wine arm in May.

Foster's said the bid valued the company at $12.3 billion on an enterprise value basis.