Foster's shares hit a high in the midst of bid talks * Blair...

Foster's shares hit a high in the midst of bid talks

* Blair Speedy
* From: The Australian
* June 16, 2010 12:00AM



POTENTIAL bidders for Foster's beer division will have to dig deeper to make a bid an offer for the asset after the company's share price hit a 19-month high yesterday.

Shares in Foster's have risen as much as 17 per cent since May 25, the day before the company announced plans to split its CUB brewing business from its wine assets.

Foster's stock yesterday jumped 25c to $6.01, their highest value since November 2008 and an 86c increase on their pre-announcement price -- boosting the company's market value by $1.66 billion to $11.45bn.

However Morgan Stanley analysts said Foster's remained "substantially undervalued" and could trade as high as $6.50 even without the benefit of a takeover premium.


full article
http://www.theaustralian.com.au/business/city-beat/fosters-shares-hit-a-high-amid-bid-talk/story-fn4xq4cj-1225880130726