takeover - the bid is in!, page-7

CCL stands to make some money if it happens also


The unsolicited bid was foreshadowed in a statement from Coca Cola Amatil (CCL) formally amending its agreement with SAB Miller to allow it to move on Foster?s.

Under the deal with SAB Miller, CCL stands to collect between $305 million and $380 million as compensation for their joint venture brewery.


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This compares to CCL?s profit last year of $506.6m.

The low ball bid values Foster's at about $9.7bn in equity terms and at just over $11bn when debt is included. The offer is an 8.2 per cent premium to Foster's closing share price yesterday.

Given the stock has traded in the $4.30 to $4.53 range, a higher offer will be needed to win control.

CCL chief Terry Davis was clearly not impressed by the move which effectively ends his chance to build a rival brewer in Australia.

The SAB Miller moves comes a week after speculation that Mexican brewer Modelo was making a move on the Australian company. The Modelo rumours clearly didn't help SAB?s cause by inflating the Fosters stock price ahead of its bid.

JP Morgan is advising SAB and Gresham and Goldman are advising Foster's