Foster’s shareholder payout expected

Foster’s Group is expected to sweeten its shareholders with a cash handout in a bid to stave off a hostile bid from SABMiller.

The Australian brewer will use its annual results tomorrow to announce either a one-off payment or bumper dividends over the next two years, according to the Sunday Times.

SABMiller tabled a £6.2bn hostile bid for Foster’s last week, but Foster’s said the AUD4.90 a share offer “significantly undervalues the company in the context of a change of control”.

It has since urged shareholders to “take no action and ignore all documents and communications from SABMiller in relation to its proposed offer”.

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