Thursday, July 28, 2016
It looks like the biggest takeover in years is in trouble
The beer giant SABMiller has told its employees to stop working on the company's combination with Anheuser-Busch InBev,Bloomberg reported on Wednesday.
That follows news out Tuesday that AB InBev, the maker of Budweiser, had raised its bid to £45 ($59) a share from the £44 ($57) announced back in October.
The new offer values SABMiller at roughly $125 billion, up fromabout $109 billion last October, based on exchange rates at the time.
Numerous activist investors in SABMiller, including Elliott Management, had raised concerns about the deal following a 12% drop in the pound versus the dollar since the UK voted in June to leave the European Union.
AB InBev also tweaked the terms of an alternative share-and-cash structure designed for SABMiller's two largest shareholders, raising the cash element by £0.88 ($1.15) a share,according to Reuters.
The beer maker's shares dipped in response to the news Wednesday.