Australia: Foster's to slash up to 20% of its product lines to avoid the risk of a takeover bid
Australian brewer Foster's Group Ltd. is looking to cut its product lines by up to 20 per cent to rejuvenate the business and ward off the risk of a takeover bid, the Australian Financial Review reported, The New Zealand Herald posted October 11.
"I would be disappointed if we didn't get it down by at least 10 per cent," Jamie Odell, Foster's Managing Director Australia, Asia and Pacific was quoted saying, adding that a move towards 20 per cent would be even better.
"I do hold to the view of fewer, bigger, better," he said.
Odell said he wanted a review of the business finished by Christmas, with the group's struggling wine portfolio expected to be the focus of product line cuts.
Foster's wine portfolio expanded to 50 brands following its acquisition of Southcorp last year. The company has already scaled back its international beer operations this year, raising more than AU$1 (US$1.14) billion from the sale of the Foster's brand in Europe and India and the sale of Asian breweries.
Foster's shares closed at AU$6.21 ($7.08) on October 10, having calmed since spiking up to a record high of AU$6.85 in mid-September on takeover speculation.
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