Foster's stands firm on bid

Foster's has urged investors to reject an A$9.5bn (£6bn) offer from Peroni maker SABMiller for the second time, saying it significantly undervalues the Australian brewer.

SABMiller announced on Wednesday it would go directly to shareholders with a repeated offer of A$4.90 a share. Shares in Foster's, which is expected to report flagging profits on Tuesday, rose as high as A$5.03 yesterday before closing at A$5.

SABMiller, which also makes Grolsch and Miller Lite, has long been seen as the favourite to take over Foster's since rivals such as Heineken lack adequate funds.