SAB bid for Foster's hit by regulator's ruling

11 April 2012

Brewer SAB Miller's A$9.5 billion (£6.33 billion) hostile move for Australian rival Foster's hit a setback today, when regulators in Melbourne rejected a raft of complaints from the British-based firm.

SAB Miller asked authorities to review what it called "misleading and deceptive remarks" made by Foster's Group in August about its profit forecasts and debt levels.

But the Australian Takeover Panel ruled it would not investigate, saying "there was no reasonable prospect it would make a declaration of unacceptable circumstances".

Foster's, Australia's biggest brewer which makes the eponymous lager as well as Victoria Bitter, had strongly denied SAB's allegations.

"Foster's takes its obligation to provide accurate and timely disclosure to the market seriously," it said.

The row had centred on Foster's claim that it expects to receive a tax refund worth about A$835 million. "SAB Miller accepts the panel's determination and is pleased Foster's has now clarified its debt position," said SAB.

Those close to the process suggested SAB's complaint may have been a tactical move as it prepares to submit its hostile bid by a mid-October deadline. Foster's rejected SAB's A$4.90-a-share cash offer on June 21. The shares today closed at A$4.85.

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