From Dow Jones this morning'GRUPO Modelo SAB de CV plans to seek...

From Dow Jones this morning

'GRUPO Modelo SAB de CV plans to seek board support for a possible joint bid with Molson Coors Brewing for Foster's Group, Bloomberg reported yesterday, citing people with knowledge of the situation.

An offer for Foster's would have to be more than its market value of about $8.8 billion, the report said.

Anheuser-Busch InBev, which has nine members on the 19-seat Modelo board and owns a 50 per cent non-controlling stake in the Mexican brewer, will likely reveal at a June 13 meeting its decision whether to support or oppose a bid, according to Bloomberg.

Anheuser-Busch is said to have raised concerns about possible logistical difficulties that could arise from Modelo and Molson managing a company in Australia, the report said.

Bank of America and Greenhill are advising Modelo, the brewer of Corona beer, while Molson Coors is working with Deutsche Bank on possible financing. "

Indications are offer would be north of $5.00

If it doesn't happen Fosters is a good defensive dividend stock