Blog: Smoke screens
Chris Brook-Carter | 10 March 2005
Deciphering the strategic signals that boardrooms send out as they look to manoeuvre through the murky world of mergers and acquisitions is often hard enough. However, at times this week it has felt as if executives the world over united to send out one mighty smoke screen.
Within a few days, the mist surrounding the future of Latin American beer producer Bavaria has thickened and Southcorp added to the confusion its shareholders must be in by suggesting it merge with Foster’s global wine operations, while once more rejecting a full takeover.
Foster’s seems to have all but rejected this apparent peace offering by the Southcorp board, saying the proposal "grossly undervalues" its wine business. Will Southcorp be that surprised by Foster’s reaction? I wouldn’t think so. This appears to be another play by Southcorp chairman Brian Finn in a game of brinkmanship. It places the ball firmly back in Foster’s half of the court and adds the pressure on them to come up with an increased bid for all of Southcorp’s business.
Meanwhile, the mystery surrounding any potential takeover offer for Bavaria deepens. Both Scottish & Newcastle, SABMiller and Heineken have been linked to bids in the last few days, but nothing concrete has emerged and the Colombian’s share price keeps climbing.
The company is an obvious takeover target following the recent merger of Interbrew and Brazil’s AmBev. Bavaria has so far played it cool, on the one hand playing down speculation whilst on the other admitting it is in discussions – a tactic that has done its shareholders no harm at all so far.
Philadelphia’s soda tax came into force on Sunday, and is reportedly causing a stir in the city's check-out aisles....
Earlier this month, I was most-kindly invited by Accolade Wines to visit the Royal Albert Hall in London. The reason? They wanted to see a tennis great in action, and then give them a guided tour thro...
Do you like whisk(e)y? And, I mean, really like whisk(e)y? Are you at a loose end in the first half of 2017? If so, then I've found just the job for you....
Most of the time, changes at the top of a company present themselves in press releases, stock exchange filings or responses from a spokesperson....
- What's coming up in spirits in 2017? - Comment
- When BRIC markets go horribly wrong
- What's coming up in beer in 2017? - Comment
- Interview, Philip Gregan, New Zealand Winegrowers
- Remy Cointreau's bellwether Q3 - analysis
- Diageo closes spirits e-commerce portal in UK
- A-B InBev acquires Spain's Cervezas La Virgen
- Home entertaining offers drinks opp's - Diageo
- Diageo mulls United Spirits stake buy - report
- Remy Cointreau sets up whisky division
- Global vodka insights - market forecasts, product innovation and consumer trends
- The Next Seven Big Beverage Markets
- Global Cognac insights - market forecasts, product innovation and consumer trends
- Global gin insights - market forecasts, product innovation and consumer trends
- Opportunities in Craft Spirits