By Ian Neubauer
Foster’s Group shares have gained valuable ground following since Kirin Holdings announced it had made an offer to takeover Lion Nathan last week.
Foster’s shares jumped 7 per cent in value , with investors speculating the deal had made Australia’s number one brewer more vulnerable to a hostile takeover bid.
The multi-beverage company has been at the centre of such rumours since June last year when it initiated a strategic review to remedy its underperforming wine business, with analysts predicting it would split into two independently listed vehicles: one for wine and another for its high-margin beer business.
The split never materialised but speculation continues to mount, with a list of potential suitors that include London-based SABMiller, which already owns the Foster’s brand in the US and India; and Canada’s Molson Coors, which secretly snapped up 5.26 per cent of Foster’s stock in November last year.
Foster’s shares were trading at $5.20 at 9:00am today (Apr 30).