Sluggish Foster’s Financial Showing May Impact Bargaining Position With SABMiller

摘要

Sluggish full-year fnancial results of Australian alcoholic drinks pro-nducer Foster’s Group may have weakened its bargaining position withnUK brewer SABMiller. Foster’s has previously rejected SABMiller’sntakeover offer twice on grounds that it undervalued the company. Givennthat SABMiller could struggle to generate additional cost savings to jus-ntify a higher valuation, we maintain our view that SABMiller is unlikelynto put forward a signifcantly higher bid to land Foster’s.