Lion Nathan bids $4.9 billion for Coca-Cola Amatil

U.S.-based Coca-Cola Co, which owns 30 percent of Coca-Cola Amatil, declined to comment on the offer. Spokesman Dana Bolden said, "It would be inappropriate for the Coca-Cola Co to comment at this time."

Lion Nathan's cash-and-stock bid, pitched at a 25 percent premium to Coca-Cola Amatil's share price, sent the target's shares up to a record high. But the shares later eased to trade below the offer value as Coca-Cola Amatil said the bid had material weaknesses and looked cheap compared with other recent deals.

"CCL is definitely not too happy with it. So, obviously, there is still a risk that the whole deal doesn't go through," said Theo Maas, a partner at Fortis Investment Partners, which manages A$5 billion, including Lion Nathan shares.

A takeover of Coca-Cola Amatil would give Lion Nathan a 60 percent share of Australia's A$10.3 billion soft drinks market as well as a canned fruits and vegetables business.

Lion Nathan, 46 percent-owned by Kirin Brewery Co, said the deal made sense, as there was little cannibalization between the businesses, and it could generate A$100-A$130 million mostly in savings on distribution to pubs, restaurants and caterers.

"That, coupled with the growth opportunities, makes the deal compelling," said Lion Nathan spokesman James Tait.

Recent months have seen a flood of consolidation among global brewers. Coca-Cola Amatil also has a beer joint venture, Pacific Beverages, with SAB Miller Plc, selling Peroni Nastro Azzurro and Miller Genuine Draft.

North American brewer Molson Coors Brewing Co this month emerged as the holder of a 5 percent interest in Lion Nathan's bigger rival, Foster's Group Ltd.

And Belgium's InBev NV is set to become the world's biggest brewer with a $52 billion takeover of Anheuser-Busch Cos Inc.