Investors are toasting a massive takeover offer in the beer market.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. It's takeover time
Anheuser-Busch InBev (AHBIF) has offered to buy SABMiller (SBMRY) for $104 billion in cash. If the deal goes through, it would be one of the biggest takeovers of all time, and the biggest deal so far this year.
Shares in both companies are rising by about 3% as investors cheer the news. However, SABMiller said Wednesday it believes the bid isn't quite high enough.
AB InBev notes that its offer of £42.15 per share ($64.35) represents a 44% premium over SABMiller's share price before takeover talk began in September.
AB InBev said it originally offered £38 per share, then £40 per share, before sweetening the bid further.
Meanwhile, competitors Diageo (DEO) and Heineken (HEINY) announced plans to swap some business units. Part of the deal involves Heineken selling its 20% stake in Guinness Ghana Breweries to Diageo.