Australian brewer Foster’s  has rejected $10 billion offer from rival SABMiller for the second time as shareholders hold out for a better offer from the global brewing giant, Bloomberg reported.

Meanwhile SAB Miller said it will go directly to shareholders to gain about half of Australia’s bear market, with a repeated offer of A$4.90 a share.

Foster said the offer significantly undervalues the company. The shares in the brewer, which is expected to report flagging profits on Tuesday, rose as high as A$5.03 on Thursday  before closing at A$5.00.

They are doing the right thing. They probably will get a better price sometime down the track and this strategy is probably the right one," said Craig Young, portfolio manager at Tyndall Investment Management, which owns Foster's shares. "The market thinks that a better price will be forthcoming. It expects something above A$5 and decently above A$5. So you're talking A$5.10, A$5.20, maybe even as high as A$5.30," he said.

The stock has gone as high as A$5.25 since SABMiller's first offer in June. SAB Miller,which makes Peroni, Grolsch and Miller Lite, has long been seen as the favourite to take over Foster’s since rivals such as Heineken are struggling with debt or lack adequate funding.

Foster's boasts high margins and a dominant position in Australia, although beer volumes have sagged recently with a poor summer and consumer downturn. SABMiller could have strengthened its hand by waiting longer to make a direct offer in the absence of a rival, shareholders said, signaling an improved bid may emerge.

So far, there has been no sign another party was seriously interested in bidding for Foster's, analysts and three sources familiar with the transaction said on Tuesday.

Foster's boasts high margins and a dominant position in Australia, although beer volumes have sagged recently with a poor summer and consumer downturn.

SABMiller could have strengthened its hand by waiting longer to make a direct offer in the absence of a rival, shareholders said, signaling an improved bid may emerge.

So far, there has been no sign another party was seriously interested in bidding for Foster's, analysts and three sources familiar with the transaction said on Tuesday.

SABMiller is the largest brewers with more than 200 beer brands and 70,000 employees in over 75 countries. It is also one of the world’s largest bottlers of Coca-Cola products.