SABMiller tops FTSE on takeover talk

SABMiller, the UK brewer, topped the FTSE 100 on Monday as bid speculation resurfaced after it made a failed attempt to take over Dutch rival Heineken.

The Financial Times reported on Sunday that the London-listed owner of Fosters and Grolsch brands had considered making a bid, but was thwarted before talks could even begin, with Heineken's founding family and chief shareholders making it clear they were not interested.

"The founding family still controls 50.1 per cent of the company so, though independent shareholders may look at the potential premium with some interest, nothing is likely to happen until or unless the family changes its mind," said Mark Brumby at Langton Capital.

Shares in SABMiller, long subject to speculation of interest from AB Inbev, the world's largest brewer, jumped 5.1 per cent to £35.80.

"So if SABMiller was looking for a poison pill to protect itself from AB InBev, it looks as though Heineken will not be suitable," Mr Brumby added.

On Europe's main index, Heineken shares climbed 1.5 per cent to €60.32 and AB Inbev added 1 per cent to €86.63.

The news also appeared to boost spirits maker Diageo, which climbed 1.8 per cent to £18.44.

After an hour and a half of trade, the FTSE 100 was down 0.4 per cent, a fall of 25 points to 6,782.09 as oil companies exerted the most downward pressure as Brent crude fell below $97 a barrel.

Petrofac, the oilfield services company, was the main index's biggest faller, down 2.1 per cent to £10.40. BP fell 1.5 per cent to 463.3p, while BG Group lost 1.2 per cent to £11.64.

Scotland-based banks Royal Bank of Scotland and Lloyds Banking Group were again among the subjects of concern over Thursday's referendum on Scottish independence. RBS lost 1.4 per cent to 344.9p, while Lloyds fell 1.1 per cent to 73.8p.

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