Jim Armitage: AB InBev will have to dig deep to win SABMiller

It’s too much to say South Africa's state pension fund Public Investment Corporation represents the whole of the Rainbow Nation’s vote on AB InBev’s bid for SABMiller, but its opposition is still a major blow.

The investment fund only holds around 3% of SAB, so doesn’t even speak for the majority of South African shareholders who own a tenth of the company.

But it is owned by the South African government and as such will be seen as a proxy for the view from the Cape Town parliament.

And today’s message to AB boss Carlos Brito is clear: we don’t like your price and we don’t like the loss of SAB’s Johannesburg share listing.

Given that any takeover has to pass South Africa’s “public interest test”, the PIC’s concerns are no small thing.

Brito can easily address its points: he must stretch his offer up to £44 to get negotiations underway and pledge to continue a Jo’Burg listing.

While he’s at it, he should give all other shareholders the chance to take more shares in the combined company too.

But most importantly, he should take a more-conciliatory tone and avoid going hostile at all costs.

Ra-ra-ra! Cheerleader of the month award goes to Bank of America Merrill Lynch, whose analysts today took up the pompoms to declare Carlos Brito could pay up to £49 a share for SABMiller without damaging AB InBev.

That is a high kick far above most other analysts, who reckon — by the way — that £44 is all that’s needed to get SAB to start talking.

Only the cynical might think Merrill’s breathless passion could be influenced by the millions of pounds it will make as a member of the deal financing syndicate.

Phones 4u tycoon John Caudwell’s battle with Lyme disease clearly isn’t his only problem these days. His spectacular fallout with the ambitious Nathalie Dauriac makes him look absurd, if her allegations are true.