According to Foster’s, SABMiller tabled an “unsolicited highly conditional” takeover offer of $4.90 per share.
In a decision taken together with its advisors, the Foster’s board has said that it intends to unanimously recommend shareholders reject the offer.
The group said: “The Board of Foster's reiterates its belief that an offer price of $4.90 per share significantly undervalues the company in the context of a change of control.
“In addition, the high level of conditionality further detracts from the proposed offer.”
The board said it would set out its “detailed views” of the proposed offer in a “target's statement” which will be mailed to all shareholders.
The group furthered that Foster's shareholders are advised to “take no action and ignore all documents and communications from SABMiller in relation to its proposed offer”.