(MELBOURNE, Australia) -- Australia's largest brewing company Tuesday turned down a takeover offer from SABMiller worth $10 billion. Foster's, which has 50 percent market share in Australia, declined the offer, saying it diminished the value of the company.
"The board of Foster's believes that the proposal significantly undervalues the company in the context of a change of control and, as such, it does not intend to take any further action in relation to it," Foster's Group said Tuesday in a statement.
Foster's first attracted attention about potential takeovers after splitting its wine and beer operations.
Foster's stocks increased 13 percent Tuesday to $5.11 upon news of the declined offer.
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