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.
You are unauthorized to view this page.