Sector movers: SABMiller lifts beverages on M&A rumours

10th Jun 2014 13:48

M&A speculation surrounding SABMiller increased the demand for beverages stocks on Tuesday.Shares in the Coors Light, Grolsch and Peroni maker were up 2% at 3,340.5p in afternoon trade after the Financial Times reported on "rumours" regarding a potential takeover.The paper cited analysts at Santander who last week highlighted "growing market chatter" about the possibility of a merger between SABMiller and Belgian-Brazilian drinks giant Anheuser-Busch InBev.AB InBev, famous for its Budweiser, Stella Artois and Corona brands, has been rumoured for more than a decade to be interested in UK-based SABMiller.Santander believes that any offer would need to be at a premium of around 40%, which gives SABMiller an enterprise value of $140bn.In other news, SABMiller's Chief Executive Alan Clark was reported as saying earlier in the week that the company was looking to make an "intense" drive to step up its presence in the US premium beer market. The company wants to lift its share to over 20%, from 14% currently, amid a surge in competition from smaller craft beer producers.Elsewhere in the beverages sector, AG Barr, C&C Group and Coca-Cola HBC were putting in small gains.Meanwhile, penny stock Distil, which owns premium spirits brands such as Blavod Black Vodka and Blackwoods Gin, was rising 5% as it rebounded after heavy selling pressure on Monday. The company reported yesterday that full-year operating losses narrowed to £0.37m, but revenues dropped 36% to £2.41m.Top performing sectors so far todayBeverages 14,419.19 +0.65%Health Care Equipment & Services 6,009.37 +0.63%Industrial Metals & Mining 1,225.87 +0.37%Industrial Engineering 10,914.95 +0.36%Electricity 9,929.76 +0.32%Bottom performing sectors so far todayFixed Line Telecommunications 4,570.17 -1.96%Forestry & Paper 11,891.58 -1.34%Personal Goods 23,458.90 -1.14%Mining 16,494.67 -0.79%Life Insurance 7,305.06 -0.67%BC