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Lion Nathan bids $4.9 billion for Coca-Cola Amatil

Lion Nathan Ltd., Australia's second-biggest brewer, offered to buy Australian soft-drinks group Coca-Cola Amatil Ltd. for A$7.61 billion, ($4.9 billion) in a cash and stock offer.

The proposed takeover would, if successful, reportedly create Australia's largest beverages group.

Coca-Cola Amatil, 30%-owned by Atlanta-based Coca-Cola Co. (KO), said the deal wasn't as good as Lion Nathan was making out and said it would halt further review of the offer.

"The pricing multiple proposed is materially below recent multiples paid for domestic and international beverage companies," Coca-Cola Amatil said in a statement Monday.

The bid, representing A$6.15 and 0.469 Lion Nathan share per share, represents a 25% premium to Coca-Cola Amatil's closing price Friday.

Lion Nathan said in a statement the merged entity would realize up to A$130 million in savings arising from synergies in operations a year.

Shares of Lion Nathan were down 2.2% while Coca-Cola Amatil climbed 13.3% in afternoon trading Monday in Sydney.

In a separate development, Japanese brewer Kirin Holdings Co. announced Monday said it would offer up A$8 billion for Coca-Cola Amatil. The deal if successful would mark the largest foreign acquisition a Japanese food company.

written on 18.11.2008 um 09:32.

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