Pursuits
AB InBev Stock Rally Complicates Deal for SABMiller Holders
- Value of cash, stock alternative on verge of topping cash bid
- Altria, BevCo may end up with premium for their shares
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Anheuser-Busch InBev NV crafted its bid for SABMiller Plc to ensure the target’s two largest shareholders got a lower price for their shares than other investors, as part of a plan to cut their tax bill. Instead, they’re on track to receive a premium.
Under the terms of AB InBev’s bid, SABMiller shareholders can choose 44 pounds a share in cash or a mix of cash and stock that was valued at just over 39 pounds a share when the terms were announced Oct. 13. Because AB InBev’s stock has gained 17 percent to 117 euros since the agreement, the value of the share alternative has jumped to about 43.53 pounds per SABMiller share, nearly eliminating the discount to the cash offer.