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MELBOURNE - Shares in Foster's Group have leaped to a record high after renewed speculation the brewer and wine maker might be a takeover target.
Foster's shares ended the day 27c or 4.1 per cent stronger at A$6.80 ($7.95), an all-time closing high, after reaching a record intraday high of A$6.97.
ABN Amro Morgan client adviser Margaret Morrissey attributed the sharp rise in Foster's stock to speculation that the world's biggest brewer, Belgium-based InBev, was circling for a takeover.
"Rumour has it that they will pay A$7.50," Morrissey said.
But another analyst, who declined to be named, said a takeover was unlikely.
"We don't see that there is much turnaround potential for the business at this stage," the analyst said.
"The business is in a state of flux while they bed down that acquisition [Southcorp]."
Fosters announced the A$3.17 billion acquisition of winemaker Southcorp last year.
Much of the speculation surrounding Foster's has centred on InBev and London-based SABMiller, but the analyst said neither of the supposed predators were likely to have their sights on the Australian beverage maker.
- AAP
