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Anheuser-Busch sweetens takeover offer for Miller after previous tries backfired

The improved offer would see Anheuser-Busch InBev purchase shares of SABMiller for more than $66 per share.

By Doug G. Ware
Anheuser-Busch InBev on Monday upped its offer to take over SABMiller, as negotiators continue to work toward an agreement. InBev has until Wednesday to present a formal offer. If the merger is successful, the resulting company would have nearly $65 billion per year in revenues and account for 30 percent of global beer sales. Photo by UPI/Billie Jean Shaw
Anheuser-Busch InBev on Monday upped its offer to take over SABMiller, as negotiators continue to work toward an agreement. InBev has until Wednesday to present a formal offer. If the merger is successful, the resulting company would have nearly $65 billion per year in revenues and account for 30 percent of global beer sales. Photo by UPI/Billie Jean Shaw

ST. LOUIS, Oct. 12 (UPI) -- The world's largest brewery tried again Monday to get one of its main competitors to accept a takeover bid that would put products of both brewers under the same roof.

Anheuser-Busch InBev sweetened its offer to take over SABMiller, the company said, which rose to include more than $100 billion in a cash-and-stock deal. It is the fourth offer from the Belgium-based brewer.

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Anheuser-Busch InBev is attempting to get SABMiller to reengage in takeover talks to reach a deal before the deadline passes this week.

The company confirmed the improved offer Monday and said it hopes the two sides can reach an agreement to "build the first truly global beer company."

The company raised its cash offer to $66.74 per share and a partial share alternative available for approximately 41 percent of the SABMiller shares, the news release said.

InBev, Anheuser-Busch's multinational arm, distributes 16 different brands -- including Budweiser, Corona and Stella Artois -- and generates about $1 billion per year.

The world's second-largest brewer, SABMiller distributes popular brands that include Miller and Foster's.

InBev has until Wednesday to extend a formal offer. Although both sides have discussed the deal four times already, none has been considered an official offer. If a deal isn't reached by Wednesday, the two sides may not revisit the deal for six months.

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News of a brewing deal emerged in September, and SABMiller has declined InBev's proposals four times -- the most recent occurring last week. SABMiller said it declined the offers because it felt they undervalue the company.

"Notwithstanding our good-faith efforts, the board of SABMiller has refused to meaningfully engage with us," Carlos Brito, Anheuser-Busch InBev's chief executive, said last week.

SABMiller is in the midst of trying to slash costs. The company has set a cost-savings goal of $1.05 billion by 2020 -- up from its initial goal of cutting out $500 million inside of three years.

U.S. tobacco company Altria, Miller's largest individual shareholder, said last week it was willing to accept InBev's takeover bid. Several other shareholders, though, have voiced opposition to the proposals.

If the two sides successfully merge, the resulting company would generate revenues of nearly $65 billion per year and account for about 30 percent of global beer sales.

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