SABMiller Plc, the world’s second largest brewer, rejected an informal takeover offer from rival Anheuser-Busch InBev NV because it was too low, Bloomberg reported Tuesday, citing people familiar with the matter. The informal bid, made just days before the Oct. 14 deadline to make a formal offer, reportedly valued SABMiller at 66.4 billion pounds ($100 billion).
The initial proposal was worth slightly over 40 pounds a share, Bloomberg reported. Executives of the London-based brewer of Peroni and Foster’s beer reportedly regard a deal of approximately 45 pounds a share as representing a fair value. Such an offer would value SABMiller at 73 billion pounds ($110.7 billion). At current market value, the company is worth approximately 59 billion pounds ($89.5 billion).
SABMiller announced last month that AB InBev, which makes Budweiser and Stella Artois, had approached it regarding a takeover. The deal, if it materializes, would create a brewing giant worth $250 billion that would produce a third of the world’s beer. And, if the bid goes through, it would be the biggest ever takeover of a British company.
SABMiller’s shares, which have soared more than 21 percent since AB InBev’s approach came to light on Sept. 16, fell 2.8 percent Tuesday, even as the company unexpectedly released a surprise trading update, nine days ahead of its original schedule. The move is being seen by analysts as an attempt to force AB InBev into making a better offer.
“In order to ensure the timely release of trading information to the market during the Offer Period, SABMiller has brought forward the release of the trading update for the six months ended 30 September 2015,” the company said, in the statement.
The company added that group revenue, excluding excise duties and similar taxes, rose 6 percent in the second quarter, while volumes rose 2 percent. This marked an improvement over the previous quarter, when revenue rose 3 percent.
However, weakness in global currencies against the U.S. dollar hurt the company, with the reported group revenue, including currency swings, falling 9 percent in both the first half and the second quarter.
“While adverse currency movements have materially impacted our reported results, we have a strong business with exceptional long term prospects,” Alan Clark, SABMiller’s CEO, said, in the statement.