By Andrew Starke
The likelihood of the Foster’s Group and its spin-off Treasury Wine Estates being acquired by foreign multinationals appear to have slimmed as potential suitors play the waiting game.
While SABMiller has maintained its interest in Foster’s brewing operations, the absence of a rival bidder means the brewing giant is under no immediate pressure to raise its offer.
Foster’s is due to release its year to June profit results on August 23 and another bid may be forthcoming in the lead-up to or soon after this date.
It is understood that SABMiller has ceased all negotiation with Foster’s for the moment.
Shares in Foster’s jumped 13 percent to $5.14 as news of the bid reached the market on June 21 but have since stagnated, trading at $5.16 seven days ago and $5.14 at 2pm today (July 6).
It has been a similar story for Treasury which was forced to respond to an Australian Securities Exchange (ASX) query on Monday (July 4) when its share price surged by more than 10 percent.
The spike was fuelled by speculation that China’s Bright Food Group was considering a takeover offer after running the rule over its wine assets.
”The Company is not aware of any unannounced information concerning it that explains the recent trading in the Company’s securities,” it said in response to the ASX query.
”The Company notes … that unnamed sources are speculating that the Bright Food Group is considering making an offer for the Company.”
Treasury Wine Estate shares were trading at $3.51 at 2pm today, down from Monday’s peak of $3.75 but still well above the $3.31 they were trading at on July 1.