Cola Amatil and SABMiller put the heat on Foster’s

The appointment comes as CCA and SABMiller prepare to open their new 500,000 hl Bluetongue brewery in New South Wales at a cost of up to AUD 200 million (EUR 140 million), which is expected to be running by late May or early June this year.

Immediately, after Mr Murphy’s appointment, which was made public in April 2010, some analysts began to speculate if the soft drinks giant is secretly planning an offer for the Foster’s Group. Analysts seem to be divided on this issue. Some analysts argued soberly that if CCA wants to boost its alcoholic beverages businesses, Foster’s struggling wine division might prove a major deterrent to prospective suitors.

As The Australian Financial Review notes, bankers at JPMorgan reckon a joint bid by CCA and SABMiller should not exceed AUD 5.70 per share, which doesn’t leave much room for a premium given that Foster’s share price is over AUD 5.40 at the moment.