|
|
Article: Philip Morris hedges its bet on Miller sale
- Article from:
- The Milwaukee Journal Sentinel (Milwaukee, WI)
- Article date:
- June 2, 2002
- Author:
CopyrightCopyright 2002 The Milwaukee Journal Sentinel. Provided by ProQuest LLC. (Hide copyright information)
|
Philip Morris hedges its bet on Miller sale
By AVRUM D. LANK of the Journal Sentinel staff
Sunday, June 2, 2002
South African Breweries certainly can afford to buy Miller Brewing
-- it is putting no cash into the deal.
To land a major foothold in the rich North American beer market
and ownership of Miller, a company that throws off millions of
dollars of cash every month, SAB merely has to issue 430 million new
shares.
True, Miller will come in a leveraged state, holding $2 billion in
freshly minted debt.
But carrying that loan, and paying dividends on the new stock,
should be no harder for SAB than tapping into a new keg.
The shares are expected to pay dividends of slightly more than
$100 ...