Hot Stocks Fosters Group FGL Takeover News | ASX FGL SharesFoster’s Group (ASX:FGL) is a brewing and wine company with a global presence, and whose core operations include Carlton and United Breweries.

In April, FGL shareholders agreed to the beer brewer’s plans to demerge its wine making division.

The division, known as Treasury Wine Estates, was separately listed, whilst the demerger was expected to provide greater flexibility for both companies going forward.

The demerger also increased the likelihood that both divisions could become takeover targets.

Out of Africa

FGL this week rejected a $9.51 billion takeover offer from South Africa’s SABMiller.

The $4.90 a share offer is at an 8.2% premium to FGL’s Monday closing share price.

FGL believes that the proposal significantly undervalues the company.

The move comes after FGL’s recent demerger.

FGL shares have rallied significantly since rejecting the offer as most analysts feel the bid will spark a bidding war.

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Fosters Group FGL ASXFoster’s Group (FGL) is a brewing and wine company with a global presence, and whose core operations include Carlton and United Breweries, Beringer Blass Wine Estates, and Fosters International.

Foster’s Australia is involved in the manufacture and sale of beer, spirits, ciders and other beverage products. The company also operates four major breweries across Australia.

On 22 December, FGL confirmed that current CEO, Ian Johnston, will leave his post once the separation of the company’s beer and wine businesses is complete.

The group also appointed the board members and CEOs of the two divisions, which are expected to be separated by the first half of calendar 2011.

As a result, FGL will be one of the stocks to watch in the early parts of next year.


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