SABMiller Takes A$9.5 Billion Bid for Foster’s Hostile

SABMiller Plc, the world’s second-largest brewer by volume, will take its A$9.5 billion ($10 billion) bid for Foster’s Group Ltd. directly to shareholders, going hostile after the board rejected the price as too low.

The cash offer is worth A$4.90 a share, less any dividend paid out by Foster’s, SABMiller said today. The board of Melbourne-based Foster’s has shown “no willingness to engage,” SABMiller said, after it announced an initial offer on June 21. Foster’s had said the bid “significantly undervalues” Australia’s largest brewer, whose shares closed at A$4.96 today.