Beer wars: SABMiller rejects $104 billion bid from AB InBev

British-South African beer brewer SABMiller on Wednesday rejected a $104 billion bid from rival beer giant Anheuser-Busch InBev.

The rebuff from SABMiller was the third this month.

Previously, AB InBev said it was "disappointed" that two earlier approaches were rejected without what it described as "meaningful engagement" from SABMiller.

SABMiller said the latest proposal still undervalued the firm and its potential for growth.

The revised proposal made Wednesday valued SABMiller at 42.15 British pounds per share (about $64) in cash, plus a "a partial share alternative available for approximately 41% of the SABMiller shares."

Its initial bid valued the company at 38 British pounds per share. The second offer was for 40 British pounds per share.

The first two offers were all-cash bids.

Reacting to the announcement, SABMiller's London-listed shares rose 1.4% to 36.71 British pounds. AB InBev's stock rose 1.98% to 100 euros (about $112) in Brussels.

AB InBev said the partial share alternative would take the form of a new, separate class of it shares that would allow it to offer a higher price than it otherwise would be able to.

It said the cash part of the new offer values SABMiller around 44% more than the closing price of its stock on Sept. 14.

“We have the highest respect for SABMiller, its employees and its leadership, and believe that a combination of our two great companies would build the first truly global beer company,” Carlos Brito, AB InBev chief executive officer, said in a statement.

Altria Group, SABMiller's largest shareholder, said it welcomed the improved offer and that it would "create significant value" for shareholders.

If the deal eventually goes through, the combined company would be responsible for about a third of global beer supply and could lead other brewers to consider mergers as they try to stay competitive.

The potential tie-up also comes as larger beer brewers have been steadily losing market share to so-called craft brewers.

Report: SABMiller rejects $100B bid from Anheuser-Busch InBev