- Shares of SABMiller (OTCPK:SBMRY) are ripping in London trading with reports out that Anheuser-Busch InBev (BUD +3.2%) is talking to banks about coming up with financing for a bid.
- SABMiller is more vulnerable after Heineken (OTCQX:HEINY) rejected its buyout overture.
- A deal between the beer giants would require significant divestiture massaging, possibly including SABMiller shedding its interest in MillerCoors (NYSE:TAP) in the U.S.
- What to watch: A-B has to decide before the end of the year if its wants to renew a soft-drink bottling contract with PepsiCo. If the brewer declines, it could be an indication that it has its eyes on SABMiller's deal with Coca-Cola in Africa.
- SBMRY +12.2%.