Foster’s Suitors Have yet to come a’Calling

A WSJ article reiterates what analysts have been saying about Foster's for almost two years: sell, sell, sell. The idea is to demerge Foster's beer and wine units, which would make the beer unit more attractive to a global player. As the article puts it, Foster's wine unit is "a financial bad drunk: messy and unpredictable" and "traps beer's value" by keeping the two combined. However, the article says potential suitors, such as SABMiller and Molson Coors, shouldn't wait for a separation before making a bid: "A strong bid now could secure the beer assets while paying a price for the wine that minimizes risk and could even provide upside." Then the buyer could always sell Foster's wine business if it doesn't hold up.

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