The chief executive of Harbin, the brewing group at the centre of China's first hostile takeover battle, yesterday appeared to open the door to a rival, amicable bid from Anheuser-Busch, the US brewer which makes Budweiser.
Peter Lo, who has advised shareholders to reject an unsolicited HK$4.3bn (£308m) bid from SABMiller, said: "Budweiser is building a national distribution network in China and this can help Harbin establish a nationwide brand."
His comments to Reuters prompted Harbin shares to make further gains on the Hong Kong stock exchange, closing 3.7% higher at HK$4.875. This is more than 50% above the price before talk of a hostile bid began this week. It is also above SABMiller's HK$4.30-a-share offer.
Mr Lo insisted a 10-month cooperation agreement between Harbin and the London-listed brewer had "done nothing good for us ... We had hoped the tie-up would boost our brand, and improve technology and sales. But nothing has happened."
SABMiller, which holds 29% of Harbin, owns 49% of its big regional rival China Resources Breweries (CRB), a joint venture with the Chinese government. The two brewing groups produce about 70% of beer in north-east China.
SABMiller believes merging the two would produce a group with a strong brand in Harbin's Hapi label to rival China's market leader Tsingtao, in which Anheuser is a big investor.
SABMiller is believed to have begun merger talks in March, but its ambitions were thwarted this week when Anheuser gained control of a 29% stake in Harbin from the Chinese regional government. The US brewer would not comment on speculation that it was preparing a rival bid.
Mr Lo said: "We believe if you run a company in China, local management is important ... Without the support of Harbin's management and staff, how can SABMiller run Harbin?"
SABMiller refused to comment on Mr Lo's remarks but it is believed to regard his criticisms as addressing the interests of Harbin workers more than those of its shareholders. Some analysts have suggested resistance to SABMiller's plans has been strongest among Harbin middle and operational management, concerned that they would lose out to counterparts at CRB in a merger.
· BBH, the east European joint venture between Scottish & Newcastle and Danish brewer Carlsberg, lost market share through its prized Russian operation. Volumes in Russia grew by 7% in the first three months of the year but the wider beer market grew by 15%. Rival Sun Interbrew is understood to have gained by flooding the wholesale market.
