Beer brewer Foster's Group (ASX:FGL) has rejected an unsolicited takeover offer from SABMiller.
FGL shares climbed 13.47% in Tuesday's trading to $5.140 after the company advised shareholders to take no action on the $4.90 per share all-cash offer.
In a statement to investors, Foster's said it believes the offer significantly undervalues the company, and plans to take no action on the conditional proposal.
On Tuesday, SABMiller also announced it had amended the terms of its joint venture with Coca Cola Amatil (ASX:CCL), Pacific Beverages, to allow SABMiller to acquire shares in Foster's Group in its own right.
The amended deal will entitle SABMiller to buy out Coca-Cola Amatil's 50% stake in Pacific Beverages if it acquires a controlling stake in Foster's at any time in the next five years. Coca Cola Amatil will also be allowed to require SABMiller to do so.
Coca-Cola Amatil has no intention of acquiring shares in Fosters either in its own right or as a passive minority shareholder, the company said in a market statement.
CCL shares grew 1.24% in Tuesday's trading to $11.460.
Foster's Group last month completed a demerger of former wine subsidiary Treasury Wine Estates.