Foster's rejects bid for wine business

08 September, 2010

Fosterís Group has turned down a AU$2.3 billion bid from an international private equity firm for its Treasury Wine Estates business.

The Australian drinks group said that it still believed that a demerger of its wine and beer businesses is its best option for the future.

It has previously indicated that this could take until the middle of next year.

In a statement, Fosterís said: ďThe high level of conditionality, the requirement for exclusivity and the terms of the proposal are considered to reduce the value and certainty of the proposal.

ďThe board believes that Treasury Wine Estates is well-positioned to grow over the coming years and thereby create additional value for Fosterís shareholders.Ē




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Reasons to be cheerful

I would like to think my outlook on things is generally optimistic. Perhaps that’s a natural consequence of working with something designed to give pleasure. But recently it has become increasingly difficult to ignore a creeping sense of negativity pervading the British wine trade.

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