In the first conference I ever went to Slava Grigorchuk asked me a similar question and I didn’t have an answer. But when I have got back to Jerusalem I have talked with Elon Lindenstrauss about it and he suggested the following easy counterexample. Take G=mathbbFp[[t]]. Pick S to be a subset of the integers with density one and with infinite complement T. Say S=leftniright and T=leftmiright. Take A=overline<tni> and take B=overlineleft<tni+tmiright>. Cleary, AB=G, h(A)=h(B)=1, but AcapB=emptyset.
Now, G is not finitely generated, if you would like to have a counterexample which is finitely generated, then you can take G=SLd(Fp[[t]]) and construct in a similar way to the above A which is made from upper triangular matrices and B which is made from lower triangular matrices. However, A and B will not be normal any more.
I am not familiar with a counterexample in which A and B are normal and G is finitely generated. I am also not familiar with a counterexample in which A and B are finitely generated. But as you can deduce from my story above this does not mean much.
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