Australia: Foster’s saw shares soaring after alleged takeover rumours

Speculations that Australia's biggest brewer may become a takeover target of buyout funds or overseas beer makers saw Foster's Group shares soaring up 6% to a record high, The Sidney Morning Herald published November 23.

The stock had risen more than 5% to AU$5.87 at 3.10pm November 23, the biggest gains since the Herald reported in August this year that the world's two largest brewers, InBev and SABMiller, and a host of private equity groups were eyeing Foster's.

Foster's chief executive Trevor O'Hoy said at the time he had not "heard any specifics" about a potential bid. But he did little to quash the rumours.

"We could not be in a better place as a company goes, so that does not surprise me, that sort of interest," Mr O'Hoy said in August.

While Foster's raised almost AU$1 billion earlier this year selling its international brewing operations, rivals such as SABMiller and InBev have been driving the global consolidation of the global beer market.

The latest speculation follows a string of deals by private equity in the media space, and comes just one day after Qantas sent its shares to record highs after revealing it had been approached by a consortium lead by Macquarie Bank.

24 November, 2006