Foster's rejects SAB Miller bid

Australian brewer Foster’s has rejected a takeover bid from SAB Miller valuing the company at AU$9.5 billion.

In a statement, Foster’s said: “The board of Foster’s believes that the proposal significantly undervalues the company in the context of a change of control and, as such, it does not intend to take any further action in relation to it.”

SAB Miller said the takeover bid was in line with a strategy to create “an attractive global spread of businesses, with a focus on developing strong and successful brand portfolios.”

SAB Miller has long been linked with a possible bid for Foster’s, which split from the Treasury Wine Estates operation in May.

A joint bid from Molson Coors and Mexican brewer Femsa had also been mooted.