Forbes: Yesterday Adolph Coors said it would offer an additional $1.81 per share, or 6%, to Molson shareholders in order to head off growing resistance and a rival offer from SABMiller. Though the Molson shareholder is now getting a better than “equal” deal, no one seems to be toasting their good fortune.
Though Coors sells a lot more beer than Molson, Molson has traditionally been more profitable, and it is the Molson partisan who has expressed dissatisfaction with the alleged equality with Coors. Pressure on the dealmakers mounted, and London-based brewer SABMiller has swooped in with its own proposal.
Shareholders of both companies are scheduled to vote on the transaction Jan. 28. If it goes through, the combined Coors-Molson brewery would have sales of more than $6 billion per year. Colorado-based Coors is currently the world’s 8th-largest brewer, and Molson is ranked No. 15.
SABMiller executives reportedly still think they can secure a deal with Molson. It has ample financing if the Coors merger falters.
