UK & Colombia: SABMiller shares lower on talk of Grupo Empresarial Bavaria bid
Shares in SABMiller PLC fell 18-1/2 pence to 816 at 12:05 p.m. June 2 on vague talk that the international brewing giant will make its long-awaited takeover bid for Colombia's Grupo Empresarial Bavaria brewery next week, AFX News communicated on June 2.
SABMiller, along with other brewing major Heineken NV and InBev are all said to be eyeing Grupo Bavaria, which is Colombia's second-largest brewer with dominant market positions in Colombia, Peru, Ecuador and Panama. Some analysts reckon the risk of a bidding war could push the price up to 9 bln usd.
SABMiller is believed to have held talks with Grupo Bavaria about a bid and appears to be in a good position to finance a bid. It has a strong balance sheet and could be in a position to issue shares as part of the deal, which would keep Bavaria's shareholders happy.
The rumours of a bid centred on a suggestion that SABMiller had cancelled a sales presentation to brokers DKW next Thursday due to a "diary clash". However, sources told AFX News that there was "nothing untoward" and that this should not be interpreted that any bid for Grupo Bavaria was imminent.
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