Foster's rejects wine offer

10 September, 2010

The Foster’s Group (Foster’s) board of directors has rejected an offer for its Treasury Wine Estates. Foster’s received an “unsolicited expression of interest” from an international private equity firm to acquire the wine assets of Treasury Wine Estates. The proposal involved a cash consideration of between $2.3billion and $2.7billion for 100% of the assets.

After considering the value range in the proposal, Foster’s said that a separation of the wine business from the beer business through a demerger is “most likely to represent the best outcome for all Foster’s shareholders”.

The board said the proposed value range “significantly undervalues Treasury Wine Estates and its future prospects”.

A statement concluded: “Foster’s remains committed to the evaluation of issues, costs and benefits of a potential demerger, with work continuing to progress to schedule. However, the Board will continue to consider any proposal that is in the best interests of shareholders.”





Comment

Dominic Roskrow

The serious business of bourbon

This is most odd. I’m standing with two American gentlemen in the corner of a very swish steak bar staring at a surreal painting of what we’re being told is a ship exploding as it sails towards a lighthouse. I think.

Click for more »

Events

Facebook

Twitter