Foster’s battens down the hatches

The City is rife with rumour that Foster’s will be the target of a hostile takeover bid once it sells its wine business. The Australian company, which announced a “strategic review” of its wine division following poor performance, is expected to complete a demerger of its wine business and is bracing itself for a takeover bid.

Foster’s wine business has long been the weakest link in the group’s portfolio of assets. It is thought that once the division has been disposed of, Foster’s beer operations, with an estimated worth of A$12 billion, will attract a number of suitors.

Fionnuala Synnott 15/10/08