CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Heineken dismisses takeover bid as 8220 non actionable 8221

Article By: ,  Financial Analyst
September 15, 2014 10:45 AM

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.

Find up to date information on spread betting strategies at City Index

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024