Brewing group SABMiller has reacted badly to the overnight news that Belgium's Inbev has made an unsolicited $46.3bn (£23.76bn) bid for US rival Anheuser-Busch. The prospect of a stronger competitor has sent SAB's shares down 22p to £12.16.
Analysts at Shore Capital have issued a sell note, saying the implications for SAB of the Inbev move are negative.
They said: "SAB stock already trades [at] around the proposed Anheuser take-out multiple. We remain sceptical of the rumoured plan B in which Inbev would turn its sights to SAB should Anheuser manage to resist its overtures.
"And if the deal were to go through, SAB - as the number two player in the market - will be competing against a much stronger number one whose beer volumes are around 80% larger that in its own."
Despite SAB's decline the overall market continues to recover, helped by a strong start on Wall Street. The FTSE 100 is up 61 points at 5784.3 while the Dow Jones industrial average is nearly 150 points higher.
