Australia: Foster's Group Ltd. denies takeover approach

Foster's Group Ltd., Australia's biggest beer and wine maker, said August 29 it was not aware of any takeover proposals, sending its shares down as much as 3 percent, Reuters accordingly reported.

Shares in Foster's surged to a record high August 29 on an unsourced media report that said InBev, the world's largest brewer by volume, and second-ranked SABMiller were thought to be looking at the Australian company, which is valued at around AU$12 billion (US$9 billion).

Analysts did not rule out a takeover but said the chances of an offer from SAB Miller or InBev were low.

Macquarie Equities said both had the capacity to buy Foster's, but neither had shown an attraction to wine.

"The Australian beer market is relatively small and mature on a global comparison, while Foster's global reach is limited by its recent divestments and complicated incumbent distribution agreements," Macquarie said in a research report.

Foster's shares were down 1.5 percent at AU$5.86 in late morning trade, in a wider market up 0.1 percent. Its shares gained 9.2 percent August 29.

"The company is not aware of any proposals which may lead to a takeover, and no approaches to that end have been made," Foster's said in a statement.