SABMiller, the brewing giant in talks about a potential takeover by rival Anheuser-Busch InBev, reports strong sales growth in emerging markets, which it said reflects the strength of its long-term business model. But as Joel Flynn reports, the brakes may already be put on a deal worth more than 100 billion dollars.
They might have thought they had more time, but Anheuser-Busch InBev have just been given their last orders at the bar. The multi-billion dollar drinks maker is hoping to buy rival SABMiller, and it has just 10 days to make a bid. But the owner of Peroni and Grolsch looks like it won't go down easily - some reports suggesting they may reject an offer. A trading statement was released early by SAB, in an attempt to increase the value of the deal, say some. BGC Partners' Mike Ingram.. SOUNDBITE: BGC Partners Market Analyst, Mike Ingram, saying (English): "Clearly the way they're pitching these numbers is that "our company is doing reasonably well" and certainly if you look at the organic constant currency revenue it's up by around six percent, and very clear signs I think from the managament of SAB Miller management that they aren't necessarily going to roll over and play dead." SAB says its 11 percent sales growth in Africa and 9 percent growth in Latin America reflects the stength of its long term business model. But while glasses might be clinking, it's at the bank where there's worries. The overall revenue figure for the group was down. SAB's Chief Executive says that's due to "currency movements". He's not the only CEO to have that problem, says Nick Parsons from NAB. SOUNDBITE: NAB Market Analyst, Nick Parsons, saying (English): "It certainly is a very, very convenient excuse for a CEO who's got to face the media, who's got to face a shareholders meeting and is looking to defend the performance of his or her company over the course of the last 13 weeks." SAB's shares fell on reports at least one shareholder is opposed to the estimated 100 billion dollar deal. They're still significantly higher though than before a takeover was suggested.