Molson Inc's planned merger with Adolph Coors Co may not have enough shareholders to endorse it because another offer may be considered soon, according to Dan O'Neill, chief executive officer of Canada-based Molson.
As part of the proposed merger with Golden CO-based Coors, Molson shareholders would receive 0.36 shares of a new Molson Coors, or about $24 to $25 per share, for each Molson share. Coors shareholders would trade their shares one for one.
O'Neill said he has not ruled out the likelihood of a rival bid from a group led by former vice-chairman Ian Molson. This bid, reportedly involving Toronto-based Onex Corp and perhaps another brewery, could be in the $3.8 billion range, which would amount to about $30 for each Molson share.