SABMiller moves in on Foster's

The board of Foster’s Group yesterday rejected an A$11.2 billion $11.9 billion takeover offer tabled by SABMiller on Monday.

The offer translates to a price of A$4.90 a share and represents an Ebitda multiple of 12.5 times forecast 2011 earnings. Specialists said that the multiple was the same as Japanese giant Kirin Holdings paid in 2009 to buy Australia’s second-largest brewer Lion Nathan, which should help investors to view the deal favourably. The price is a premium of 14.5% to Foster’s trading price of A$4.28 on June 2, the day before the most recent round of speculation of a bid for the company, and a premium of 18.4%...