SABMiller Said To Be Readying Loan For New Foster's Bid -Reuters

SABMiller PLC (SAB.JO) is assembling a bank group that would provide a multibillion-dollar syndicated loan for a new bid for Foster's Group Ltd. (FGL.AU) of Australia, Reuters cited banking sources as saying Thursday.

SABMiller was in talks with banks in June over a possible $9 billion in financing to back its initial unsolicited bid of A$4.90 a share. The company said at the time that it intended to fund its A$9.5 billion ($9.7 billion) all-cash bid for Foster's with new debt and an existing $2.5 billion loan. Foster's rejected that offer, saying it undervalued the company.

SABMiller, which is arranging the loan itself, is inviting banks to join advisers J.P. Morgan Chase & Co. (JPM), Royal Bank of Scotland Group PLC (RBS) and Morgan Stanley (MS), according to a banker cited by Reuters.

Bankers and investors told the news service on Wednesday that SABMiller expects to renew its bid for Foster's with a slightly higher offer that's likely to succeed after rival bidders failed to come forward.

London-based SABMiller is expected to wait for Foster's to report full-year earnings on Aug. 23 -- expected to be reflect the bleak beer market -- before increasing the pressure on the company's board to accept its current, slightly higher bid of A$11.2 billion.

Full story at http://www.reuters.com/article/2011/08/11/us-sabmiller-loan-idUSTRE77A57420110811

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