SHARES IN Foster’s Group surged more than 13 per cent as investors bet on a bidding war for Australia’s biggest brewer by sales.
The company rejected an A$9.5 billion (€7 billion) takeover offer yesterday morning from SABMiller, the world’s second-largest brewer by sales, claiming the bid significantly undervalued the company.
But analysts predicted further machinations, either through the entry of a rival bidder or an increased offer from SABMiller.
Foster’s last month spun off its unprofitable wine unit into a separate listed company, Treasury Wine Estates, to become a beer-focused business and one of the biggest developed-world takeover targets in an industry that has spent more than $142 billion in deals in the past five years.
Grupo Modelo of Mexico and Molson Coors, the North American brewer, are known to have discussed a joint bid for Foster’s.
The non-binding bid of A$4.90 per share means an 8.2 per cent premium to Foster’s closing share price on Monday. – (Copyright The Financial Times Limited 2011)
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