InBev tells SABMiller: Don't let beer giant merger die

Mixing drinks: SAB's Miller High Life and AB InBev's Budweiser

Brewer Anheuser-Busch InBev has told shareholders at rival SABMiller not to let the chance of a takeover "slip away".

On Wednesday, SAB's board rejected AB InBev's third offer of £42.15 a share, valuing SAB at about £65bn.

It said the offer "very substantially undervalues" the company.

In reply, AB InBev said: "The cash proposal represents a premium of 44% to SABMiller's closing share price of £29.34 on 14 September."

SAB's shares started to rise on 15 September on speculation that AB InBev would make a firm takeover offer.

Carlos Brito, chief executive of AB InBev, said: "Our proposal creates significant value for everybody. How long will it be before shareholders see a value of over £42 in the absence of an offer from AB InBev?

"If shareholders agree that we should be in proper discussions, they should voice their views and should not allow the board of SABMiller to frustrate this process and let this opportunity slip away."

A SAB spokesperson said the AB InBev announcement "contains nothing new".

Biggest brewer

Any deal between the two companies would create the world's biggest brewer, worth more than £180bn and produce one-third of the world's beer.

SAB has pointed out that a merger would create problems with regulators in the US and China, because of the dominant position that the new company would hold there.

AB InBev said it had done significant work on regulatory issues and identified solutions. "AB InBev intends to work proactively with regulators to resolve any concerns."

It brews Budweiser, Stella Artois and Corona, while SAB brews Peroni and Grolsch, among others.

On Tuesday, SAB reported a 9% fall in revenues for the three months to September, which it blamed on weakening emerging market currencies.

Sales volumes were up 2%.