By Andy Young
After weeks of speculation regarding a possible takeover, SABMiller has reportedly rejected the first bid made by fellow brewing giant AB InBev.
The initial approach, which was made last week, was worth just over GBP40 per share. Bloomberg has reported that SABMiller executives and some shareholders believe that GBP45 per share represents a better valuation of the company.
Reports say that after rejecting the offer SABMiller communicated to AB InBev the terms at which it would be willing to negotiate.
Although it is possible AB InBev could now walk away from the deal, one analyst told Bloomberg that it is unlikely.
Robert Ottenstein, an analyst at Evercore ISI, told Bloomberg: "AB InBev is unlikely to have gone this far unless it intends to see it through. We still believe that a transaction with SABMiller would be financially and strategically compelling, even at a potentially higher than previously assumed offer price."
Yesterday SABMiller announced that its beer volume has returned to growth in its second quarter. That annoucement came nine days earlier than expected, with many predicting that trend will have to equate to a better offer from AB InBev.