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SABMiller Could End Up Paying Too High a Price

The brewer's bid for Foster's Group was today rejected but Morningstar's Philip Gorham expects the company to return to the table

Phlip Gorham, CFA, 21 June, 2011 | 6:12PM

Brewing giant SABMiller (SAB) has had an AUD 9.5 billion ($10.1 billion) cash offer for Foster's Group of Australia rejected. At this stage, we are maintaining our fair value estimate, but we believe SABMiller will return to the table with a revised bid, and we may revise our valuation slightly downward if we deem the ultimate price paid to be too high.

Morningstar Equity Analysis is available to Premium members. Read our analyst's fair value estimate and investment thesis by clicking here. Subscribe to Premium here.

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Securities Mentioned in Article
Security NamePriceChange (%)Morningstar
Rating
SABMiller PLC3,487.50 GBX0.50