Shares in SABMiller were down on the FTSE 100 in morning trading after Australian rival Fosters rejected a takeover offer made by the group.

The deal, which valued Fosters at A$4.90 per share or A$11.2 billion, aimed to boost SABMiller's presence in Australia and Asia. SABMiller said the offer represented a 14.5 per cent premium on the company, whose shares were trading at A$4.28 on 2 June 2011.

SABMiller claimed it would finance the deal with its existing resources and new debt facilities.

Fosters said in a statement, "Foster's Group Limited (Foster's) announces that it has received an unsolicited, incomplete, non-binding and conditional proposal from SABMiller plc to acquire all of the shares in Foster's via a scheme of arrangement at a price of $4.90 per share in cash.

"The Board of Foster's believes that the proposal significantly undervalues the company in the context of a change of control and, as such, it does not intend to take any further action in relation to it.

Graham Mackay, Chief Executive of SABMiller, commented, "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."

By 11:40 shares in SABMiller were down 3.12 per cent on the FTSE 100 to 2,114.00 pence per share.

FTSE Australia