SINGAPORE: As a deadline nears, Dutch beer maker Heineken may be forced to increase its $4.1 billion offer to Fraser and Neave in order to take over Tiger Beer and 24 Asian breweries. The deal could ultimately see the company's bid break apart Singapore's drinks and property company. Heineken already owns 42 percent of the Asia Pacific Breweries (APB), but wants F&N's 40 percent stake as part of a general offer to defend the region against advances by Thailand's second-richest man. The world's third-largest brewer extended its offer of S$50 per APB share until Friday, fueling speculation that F&N was haggling with Heineken over the price. “We are waiting for F&N to give a response to our offer,” a Heineken spokesman said, adding that the deadline was 6 PM in Singapore and noon in Amsterdam. The bid last week came only days after a Thailand billionaire and his family made an initial offer for the Southeast Asian company. The battle has sparked a small battle over the future of beer in the region, with Heineken seen as attempting to ensure it maintains its status as a leader in the region. The Dutch brewer sought to acquire Singapore-listed conglomerate Fraser and Neave's direct and indirect stakes in APB, one of the largest Asia-Pacific breweries, putting a S$50 per share bid on the table. The previous bid by Thai business tycoon Charoen Sirirvadhanabhakdi at S$45 per share had come as a surprise in the opening days of the selling. Asia is a key revenue driver for Heineken, having posted an 8.4 increase in first-quarter beer volumes, nearly double the growth in the Americas and well above a drop of almost two percent in its home market of Western Europe. “People were expecting something from either Heineken or Kirin, but how fast Heineken moved is the surprising thing," said Andrew Chow, head of research at UOB-Kay Hian in Singapore, in comments published by Reuters news agency. Fraser and Neave (F&N) owns 40 percent of APB, maker of the internationally popular Tiger beer. Heineken already owns 42 percent of the beer maker, a stake that it has repeatedly said it will maintain given Asia's fast-growing beer market. Rival brewer Japan's Kirin Holdings (2503.T) also owns a 14.7 percent stake in F&N.
