Brewer reported to be possible £75bn target of investment group 3G CapitalWith markets drifting ahead of the meeting between Greece and its European creditors to - once more - try and hammer out a deal, there is a spate of takeover talk to occupy investors.SABMiller is up 79.5p at £35.37 following weekend reports that 3G Capital, an investment group led by former tennis player Jorge Paulo, was considering a £75bn takeover bid for the brewer. The Mail on Sunday said 3G, which owns a controlling stake in Anheuser-Busch, was looking at a possible offer as part of a consortium.Due to a significant difference of opinion on value with a key stakeholder, it has not been possible to reach agreement on the terms of a possible offer.We retain our sell recommendation on 888 and 96p price target. We believe competition will increase significantly in the UK post the introduction of the Point of Consumption Tax, resulting in a significant slowdown of revenue growth for 888, whilst we believe the valuation remains aggressive given the high proportion of unregulated revenue (around 40%). The old bugbears are back to stalk markets this morning. The ceasefire in Ukraine, barely a day old, is already looking shaky, while anxious eurozone markets turn their eyes to the latest meeting between finance ministers, who are recommencing the uphill struggle to hammer out an agreement between Greece and its partners. We can only hope that today’s session is more productive than last week’s, where even a single statement from all parties was too much to ask. The default setting for most investors today is ‘sit on your hands’, and await developments. Continue reading...
 |
| READ THE ORIGINAL POST AT www.theguardian.com |
