BUZZ-SABMiller: AB InBev raises takeover offer to 42.15 stg/shr

(Adds SAB, Altria statements, analyst comment; updates stocks)

** SABMiller (Xetra: BRW1.DE - news) 's London-listed shares rise as much as 4.4 pct in heavy volumes, before paring some gains, on Anheuser-Busch InBev, the world's largest brewer, raising its cash offer for SAB to £42.15/shr

** New (KOSDAQ: 160550.KQ - news) proposal values its largest rival at just over £68 bln ($104 bln)

** Stoxx 600 Food and Beverages index up slightly, led by AB InBev that shows a c.2 pct gain; SAB fourth top gainer on index

** SAB says its board will meet formally to consider AB InBev's latest proposal, but Chairman Jan du Plessis comments: "AB InBev is very substantially undervaluing SABMiller."

** Offer around the mid point of analysts' expectations

** SAB's shares trade below offer price on Wednesday

** "This is not, in our view, intended as ABI's concluding proposal but it is likely to put pressure on SAB's management to engage and at least there is now a formal proposition to discuss," brokerage RBC Capital Markets writes

** Major SAB shareholder Altria, with c.27 pct stake, comes out in support of AB InBev's revised offer

** SAB has gained a fifth in value since Sept. 15, day before AB InBev's takeover approach was revealed (RM (LSE: RM.L - news) : esha.vaish.thomsonreuters.com@reuters.net)