Southcorp is back in favour - with investors, at least. The listed Australian wine producer is perceived as a takeover target by investors, who have pushed the company's share price upward in recent weeks.

The speculation has been fuelled by the flurry of consolidation in the global wine industry.

Southcorp, which has the Rosemount, Lindemans and Penfolds labels, has experienced tumultuous times following its merger-takeover by Rosemount.

Its shares have risen by 50% this year, while the Australian Stock Exchange broke for the Christmas holiday with Southcorp rising by 5.2% to A$4.05 (US$3.10).