Online Stockmarket Trading Update

Kirin Holdings has offered $6 billion to buy out the remaining 54% of brewer Lion Nathan, but Lion is holding out for a higher bid according to media reports.

Lion s major shareholders are thought to be aiming at a sale between $11.50 and $13 per share. Before it went into a trading halt on Wednesday, Lion was trading at $8.31.

• Kirin and rival Asahi are in a race to expand operations outside of Japan. Asahi recently moved to purchase Schweppes Australia, and Kirin has bought National Foods, Berri and Dairy Farmers.
• Under the proposed deal, the Lion management team would remain in place, and Lion would be responsible for all of Kirin s Australian operations.
• Lion plans to establish an independent committee to assess the value of the offer for retail investors.
• The ACCC is also likely to take an interest in the deal, after it enforced several concessions in Kirin s purchase of Dairy Farmers last year.

For more info and analysis:

• The Australian Financial Review
• The Australian
• The Sydney Morning Herald