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22 June 2011 By John Foley Follow @johnsfoley

If SABMiller goes hostile with its $12 bln approach, a winning counterbid for the Australian brewer looks unlikely. Most other big rivals are indebted or chasing racier markets. Foster’s needs a selfhelp plan fast to bag a higher offer, if not secure its independence.

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Foster's Group rejected an allcash bid from SABMiller on June 21 that would have valued the Australian brewer at A$11.2 billion ($11.8 billion), including net debt. It said the A$4.90ashare offer significantly undervalued the company. Shares in Foster's closed at A$5.20 on June 22.

Heineken, the Dutch brewer, appeared to rule itself out as a counterbidder on June 21, as chief financial officer Rene Hooft told Reuters the company would focus on emerging markets. China Resources, which owns China's bestselling beer brand, Snow, also ruled itself out as a bidder.

Foster's spun off its wine business into a separately listed vehicle, Treasury Wines, on May 10, leaving its beer business, which holds half of the Australian beer market by volume, in a standalone entity. Its closest rival, Lion Nathan, was acquired by Japanese brewer Kirin in April 2009.

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