Next round
Foster’s has extended its offer for Southcorp until 14 April this year, thus gearing up for the next round of this protracted and hostile USD 2.5 billion takeover battle for Australia’s major wine company. In a letter to Southcorp’s shareholders Foster’s has repeated its initial offer of AUD 4.14 per share - a price which Southcorp’s board deems too low. However, Southcorp’s dithering is only part of the game to extract a better price from Foster’s, which may prove a tad bit difficult to achieve as in Southcorp’s case there is no rival bidder and Foster’s already has its foot on 18 percent of the company.
That’s why the two parties have to reach an agreement eventually, or there will be some very disgruntled Southcorp shareholders. Southcorp is a once-in-a-career opportunity.
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