By Ian Neubauer
Foster’s Group may have to write down hundreds of millions of dollars from its troubled wine business when it delivers its half-year result and the findings of a long-awaited strategic review next month.
Foster’s has been in a state of flux since August last year when it announced a strategic review of its wine business and an after tax write down of $600 million on the back of sharply deteriorating sales in the all-important US market.
But Goldman Sachs JBWere warned yesterday (Jan 27) the global economy had deteriorated significantly since the review kicked off and Foster’s may have to write down another $700 million in intangible assets, The Australian reported.
Foster’s declined to comment on the report and dozens more like it that have made headway among investors over the last six months, saying all options were still on the table.
Foster’s shares were trading at $5.32 at midday today (Jan 28) compared to $5.25 seven days ago.
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