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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.

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Securities Mentioned in Article
Security NamePriceChange (%)Morningstar
SABMiller PLC3,068.50 GBX0.87