The Board of Foster's said the proposal "significantly undervalues the company in the context of a change of control" and "it does not intend to take any further action in relation to it".
Foster's is being advised by Goldman Sachs, Gresham and Allens Arthur Robinson.
Before Foster's rejected the offer, SABMiller chief executive officer Graham Mackay was quoted as saying:
“SABMiller has a proven track record of acquiring and integrating brewing companies in a way which benefits shareholders, employees, business partners and the broader community.
“We aim to strengthen the Foster’s brand portfolio and work with the local team to bring our innovation, global scale and expertise to the business.
“We continue to believe that the proposal price is attractive and offers good value to Foster’s shareholders. SABMiller can conclude a transaction quickly and will continue to seek engagement with the Board of Foster’s to put an agreed proposal to Foster’s shareholders.”