BUZZ-SABMiller and ABI: the Street view

** SABMiller (Xetra: BRW1.DE - news) enjoys its best day on record after it confirms an approach from ABInbev to create a $250 bln company

** Company yet to announce an offer price, with sell-side estimates ranging between £38-£49

** Analysts broadly supportive of the deal, saying the tie-up is likely to be highly accretive, though the new company may have to divest some assets in the US and Asia

A round-up of talking points from across the Street -

** Goldman - expects deal to be c. 22 pct accretive in year 1 and 31 pct in year 2. Views ABI as "the best cash deployer in European staples" and believes an 8.9 pct rise in shares following the announcement fails to price in the potential upside from material cash deployment. Takeout target for SAB of £49.90 on a 12-month view

** BAML - standalone price target of £38 on SAB but says it is "highly likely" it will put up a robust value-based defence. Sees eventual offer price of £45, a multiple of 15x 2016E EBITDA pre-synergies. Anti-trust "surmountable" but could take up to a year for the deal to pass

** Kepler - ABI can leverage to 5x which implies net debt of $113bn, already has $40 bln, so $73 bln room for acquisition. Says acquiring SAB would cost around $89 bln, so ABI would need to issue equity of around $15 bln. Sees possible anti-trust issues in the US and China

** Barclays (Swiss: BARC.SW - news) - less bullish on the deal: sees a lower bid price of £40, 7 pct accretive year 1, 9.5 pct in year 2. On anti-trust, says a combination is likely to require the sale of China, Miller Coors and 20 pct of Castel in Africa

** JPM - model assumes a 30 pct premium to SAB's closing price of Feb 13, i.e. £44.95. A 100 pct debt-financed deal would be 20 pct accretive to ABI, with a 50 pct debt-financed deal being 5 pct accretive

** Numis - PT of £41 includes a built-in takeover premium. Notes areas of overlap in US and parts of Asia, possible solution in US would be to ask Molson Coors to take other half of a JV shared with SAB

(RM (LSE: RM.L - news) : alasdair.pal.thomsonreuters.com@reuters.net)