Foster's Wine Business Worth $3.3 Billion to Buyout Firms, Merrill Lynch Says
Foster's Wine Business Worth $3.3 Billion to Buyout Firms, Merrill Lynch Says
Sep 16, 2010 6
Foster’s Group Ltd., Australia’s biggest brewer, may attract bids from buyout firms for its wine business worth A$3.5 billion ($3.3 billion), according to analysts at Bank of America Corp.’s Merrill Lynch unit.
Private equity would get a business that generates A$550 million in annual free cash flow without “compromising” future growth, analysts led by David Errington wrote in a note to clients today. Melbourne-based Foster’s last week rejected a bid worth as much as A$2.7 billion for its Treasury Wine Estates unit from an unidentified buyout firm.
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