Heineken dismisses takeover bid as “non-actionable”

<p>SABMiller has seen a takeover bid of Heineken rejected by the Dutch brewer.</p>

Heineken has branded a takeover bid from London brewer SABMiller as "non-actionable".

The Dutch beer brand rejected the approach from the UK-based company following a consultation with its majority shareholder. Heineken's founding family still owns half of the company and this was of the defining factors in dismissing SABMiller's bid. The family stated that they wanted to preserve Heineken's identity and allow it grow as "an independent company".

In a statement, the firm said: "The Heineken family and Heineken N.V.'s management are confident that the company will continue to deliver growth and shareholder value."

Heineken's announcement came in response to an article by Bloomberg News which cited that people, who did not wish to be identified, stated that SABMiller was preparing a bid for the company. However, Heineken family members are reluctant to relinquish control of the €35 billion (£27.8 billion) business.

Speaking to Bloomberg, Matthew Beesley, portfolio manager and head of global equities for London-based Henderson Global Investors Ltd, said: "For SAB, a way of preserving their independence is to buy Heineken

"It’s easy to underestimate the desire for management teams to be in control of their own destiny rather than to sell their business at a very high price.”

News of the takeover sparked a surge in Heineken's share price, jumping 4.3 per cent to €61.98,  the highest since December 1998. It opened on Monday (September 15th) morning at at €60.53 following a slight rise of 1.78 per cent during after hours trading.

Heineken recently announced the sale of its Mexican packaging business to US firm Crown Holdings. The one-off deal, worth $1.23 billion (£740 million) is designed to allow the Dutch brewing company make a gain of $300 million. The deal is expected to be completed by the end of the year, subject to regulatory approval.

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