SABMiller PLC (SAB.JO) is assembling a bank group that would
provide a multibillion-dollar syndicated loan for a new bid for
Foster's Group Ltd. (FGL.AU) of Australia, Reuters cited banking
sources as saying Thursday.
SABMiller was in talks with banks in June over a possible $9
billion in financing to back its initial unsolicited bid of A$4.90
a share. The company said at the time that it intended to fund its
A$9.5 billion ($9.7 billion) all-cash bid for Foster's with new
debt and an existing $2.5 billion loan. Foster's rejected that
offer, saying it undervalued the company.
SABMiller, which is arranging the loan itself, is inviting banks
to join advisers J.P. Morgan Chase & Co. (JPM), Royal Bank of
Scotland Group PLC (RBS) and Morgan Stanley (MS), according to a
banker cited by Reuters.
Bankers and investors told the news service on Wednesday that
SABMiller expects to renew its bid for Foster's with a slightly
higher offer that's likely to succeed after rival bidders failed to
come forward.
London-based SABMiller is expected to wait for Foster's to
report full-year earnings on Aug. 23 -- expected to be reflect the
bleak beer market -- before increasing the pressure on the
company's board to accept its current, slightly higher bid of
A$11.2 billion.
Full story at
http://www.reuters.com/article/2011/08/11/us-sabmiller-loan-idUSTRE77A57420110811
-Dow Jones Newswires; 212-416-2900