Foster's moves on SouthcorpJan 13 11:00AAP Brewer and winemaker...

Foster's moves on Southcorp
Jan 13 11:00
AAP


Brewer and winemaker Foster's Group has requested talks with Australia's largest winemaker Southcorp after taking a major stake in the company.

Southcorp and Foster's both placed their shares in trading halts pending an announcement expected before the Australian Stock Exchange opens on Monday.

Southcorp said Reline Investments had sold all of its shares in the company to Foster's for $4.17 a share.

"Foster's have requested discussions with the company, for this reason a trading halt is requested," Southcorp said.

Reline was Southcorp's largest shareholder and owned by the Oatley family. At the date of Southcorp's 2004 annual report, Reline had an 18.8 per cent stake.


In a letter to the ASX requesting the trading halt, Southcorp said Robert Oatley and Sandy Oatley had resigned as directors of the company following the sale.

Southcorp, Australia's largest winemaker, has been the subject of takeover speculation in recent months.

There has been some talk that Foster's may be circling Southcorp, whose brands include Penfolds, Rosemount Estate, Wynns and Lindemans.

Australian beer and wine group Foster's owns Beringer Blass Wine Estates.

Foster's gave no reason for the trading halt. "The company is unable to comment on the reason for the trading halt, or on market speculation generally," Foster's said in a statement to the ASX.

"Foster's is mindful of its disclosure obligations as a listed company and will keep the market informed as appropriate."

Foster's said it expected to make an announcement before the start of trading on Monday.

Foster's shares closed at $5.65 on Wednesday. Southcorp shares closed at $4.25.