The shares of the beer arm Foster's have climbed up by 6% in early trading on today because of the reports of a takeover bid.

The brewing giant SAB Miller (SAM) has launched a 7 billion pounds bid to take-over the beer maker CUB. SAM is the owner of Foster's in India and also has the brewing rights of Foster's in America.

The shares rose up by 6% or 35 cents and reached to 6.17 dollars in the first hour of trading, which has been the highest since 2008 November.

The London based SAM has shown its interest on the Carlton United Breweries (CUB), which is the owner of Carlton Draught and Victoria Bitter.

According to SAB Miller this deal would put the company in a position to challenge the largest brewer of the world, Anheuser-Busch InBev of Belgium. SAB Miller is also the owner of Grolsch, Peroni and other Miller brands.

According to a news paper the chief executive of SAM, Graham Mackay wants to finalize this deal before his retirement. This deal would help the company to expand its business mainly in Asia.