The struggle for control of Foster’s warmed up yesterday after the Australian brewer pledged to return at least A$500 million (€365 million) to shareholders, an action that was specified as a potential deal killer to a A$9.5 billion hostile offer made for the company by SABMiller.

The UK-listed brewer, the world’s second biggest by sales, this month offered A$4.90 a share for its Australian rival, with several conditions to its bid including a specification that its target did not make cash distributions. SABMiller is set to take its offer to Foster’s shareholders, but bankers said the move by Foster’s yesterday could lead the UK group to walk away. – (Copyright The Financial Times Limited 2011)