Australia: Coopers makes the hard move in its takeover war with Lion Nathan

Coopers Brewery has made the hard move in its takeover war with Lion Nathan. More precisely, Coopers, has matched Lion Nathan's $260a-share takeover offer, which according to analysts is very probable to ruin the Sydney brewer's hostile bid.

Coopers has written on November 7 to its 117 shareholders announcing a $260-a-share buyback. Coopers is also expected to announce ongoing capital-management initiatives in its target's statement, which is to be released within the next two weeks. In particular, this means that shareholders who wish to sell out in the future will have the opportunity to do so.

A share valuation would have also been sent to shareholders, together with notification of the company's annual meeting, to be held on November 29.

It is expected that Lion Nathan will not just observe this but will increase its $352 million bid.

However Coopers board is said to be confident that the buyback will satisfy the needs of the 5 to 10 per cent of shareholders interested in selling. "In reality, most shareholders have indicated they are not sellers. The next two to three years is where the growth is all going to come."