London-based SABMiller executives are currently waiting for Anheuser-Busch InBev to make a committed offer take over the company - it must do so before October 14th, or walk away from the negotiating table for at least six months.
Bloomberg has reported that SAB has informally rejected ABInBev's initial offer. SABMIller shares have taken a hit today - falling by 3.33%, sparking speculation that the merger may not happen.
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This comes after a New York Post story was published overnight which said that the deal could collapse before it gets off the ground.
Quoting a source with direct knowledge of the situation - it said that the current management team are "leaning towards" fighting the proposed merger. It says that it is still 60% likely that the deal will to go ahead.
"SAB is gearing up to fight,” one source said, adding, "this is far from an easy deal.”
The report adds that ABInBev will not proceed with a hostile takeover attempt if its advances are met with opposition from SABMiller.
SAB released an early financial statement today - it reported strong sales, but its bottom line was hit by currency fluctuations - leading to a 9% fall in profits while volumes were up by 2%.
ABInBev announced in mid-September that it is preparing a bid. If they join together the new company will make one out of every three bottles of beer sold in the world.
