Shares in SABMiller declined R5.39 or R2.14% 246.51 on the JSE in morning trade.
SABMiller had announced on Wednesday that it intended to make an unsolicited highly conditional "takeover offer" for all the shares in Foster's Group at a price of $4.90 per share in cash, reduced by the amount of any dividend or distribution paid or declared by Foster's after 17 August.
It follows a similar offer, tabled in June, by the world's second-largest brewer.
"The Board of Foster's, together with its advisers, has carefully considered the proposed offer and intends to unanimously recommend shareholders reject the offer. The Board of Foster's reiterates its belief that an offer price of AU$4.90 per share significantly undervalues the company in the context of a change of control," it said in a statement.
In addition, it noted that the high level of conditionality further detracted from the proposed offer.
"Foster's shareholders are advised to take no action and ignore all documents and communications from SABMiller in relation to its proposed offer," the group said.
Foster's was being advised by Goldman Sachs, Gresham and Allens Arthur Robinson.
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