MONTREAL, Jan. 12 (UPI) -- London's giant SABMiller brewery is ready to bid for Canada's Molson Inc. if its merger with U.S. brewer Adolph Coors Co. collapses.
Growing resistance among Canadian shareholders to a Molson-Coors merger has increased lately, largely because many of them think their Molson shares are undervalued and the proposed deal looks to them like a takeover by Coors, not a merger of equals, the Wall Street Journal reported Wednesday.
That resistance has encouraged SABMiller to portray itself as a lucrative and willing alternative to Coors of Colorado.
Whether Molson ends up in U.S. or British hands may turn on which member of the Molson family woos more shareholders to his side.
Molson Chairman Eric Molson is believed to support a Coors merger and oppose a SABMiller buyout; but Ian Molson, deputy chairman, opposes the Coors proposal and appears favorable to SABMiller.
Next Wednesday Molson shareholders will vote on the Coors proposal, which requires a two-thirds majority to succeed.
