Mildara affirms Corbans bid

SYDNEY - Foster's Brewing's Mildara Blass wine division has confirmed interest in buying Corbans Wines, but is playing down speculation that a deal is close.

The Business Herald reported last week that Australian brewing giant Foster's was the prime candidate to purchase the West Auckland-based winemaker from DB Group.

Yesterday, the Australian Financial Review reported that the Corbans sale process was nearing its conclusion, with Mildara seen as the frontrunner and market analysts tipping a price of close to $A125 million ($162 million).

But Mildara managing director Terry Davis ruled out suggestions that an announcement was imminent.

"I don't think we are even remotely close. We have lodged an expression of interest, and that is it.

"My understanding is that we are one of the parties that have been narrowed down to a shortlist."

Other potential buyers include BRL Hardy, Southcorp and French company Pernod Ricard.

Mr Davis said he had no idea if Mildara was the frontrunner.

"I don't know if we are the lowest bidder or the highest bidder. If we can buy it at the right price, we'll be there. If not, we won't be."

Mildara this week increased its presence in the New South Wales Hunter Valley region by acquiring a 50 per cent stake in the Briar Ridge winery for a price understood to be about $A3 million.

Mr Davis said Mildara was continuing to look for other opportunities in Australia and New Zealand.

"We treat all our acquisitions on a case-to-case basis. To that extent we are in discussions with various people at various times."

However, he said Mildara was not interested in Montana Wines, in which Foster's rival, Lion Nathan, is seeking to raise its shareholding from 20 to 25 per cent.

"Montana is not in our sights at all."

At yesterday's closing price of $2.47 (down 3c), Montana is worth $530 million.

DB Group closed up 5c at $3.00 on minimal volume, and Lion Nathan was steady on $4.95.

- NZPA