Colombia: South America's second-largest beer maker, Grupo Empresarial Bavaria, dampened feverish takeover speculation on Friday, March 11, saying it had received no offer to buy shares in the company, according to Reuters’ statement. The denial came three days after a Reuters report that quoted a source from Bavaria's controlling Santo Domingo group as saying Dutch brewer Heineken NV had offered $9 billion for Bavaria.

Colombia's financial markets regulator, the Securities Superintendency, on Thursday, March 10, had ordered the company to comment on the accuracy of the Reuters report. "Neither senior management nor the board of directors has received any offer of any deal which would affect Bavaria SA or its shareholding composition," Bavaria said in a letter to the Securities Superintendency.

Bavaria shares decreased by 8 % in early trade on the Colombian Stock Exchange on the denial, traders said, hitting 45,520 pesos. Tuesday's report had caused Bavaria shares to jump 9 % in one day. The shares have gained 66 % so far this year on persistent reports from analysts and industry sources that the world's top four brewers -- InBev, Anheuser-Busch Cos. Inc., SABMiller Plc and Heineken -- are all looking at buying Bavaria.

The company said the public should beware of news media reports that it said had generated a "wave of speculation." "Bavaria SA calls on the public to consider the implications that such rumors could have on the stock market," it said in a news release.

Bavaria, South America's largest remaining independent brewer, said in January that it had met representatives of world beer companies but had not received any offer that would affect its share composition.

Earlier this month, analysts and industry sources said London-based SABMiller was leading the field in an auction process for Bavaria that was likely to take months.

Heineken refused to comment on Tuesday's report, but a Bavaria spokeswoman said executives from the Dutch brewer were visiting Bavaria's installations in Colombia.

Bavaria, which has an enterprise value of about $7 billion, dominates markets in Colombia, Ecuador, Peru and Panama, and would largely complete Latin America's brewing jigsaw for the largest world brewing companies. Latin America's young population and thirst for beer makes it one of the most attractive investment options, along with China, for big brewers facing sluggish demand in their traditional European and U.S. markets.

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