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.
Whenever we read anything about Millennial consumers, there is almost always mention of the personalisation trend as well as the importance of social media....
Ever wondered what fuels Anheuser-Busch InBev's acquisitional drive? Is it naked ambition? Faith? The good of mankind?...
Anheuser-Busch InBev is reportedly calling a halt to its Seth Rogan and Amy Schumer Bud Light campaign in the US....
Today is SABMiller's final day. Some time this evening, Brussel's time, the second-biggest brewer in the world will be subsumed into the biggest, creating a beer behemoth of unprecedented proportions....
- Diageo NA head on Trump, Millennials, Bourbon
- Has Millennial-mania drowned out elder consumers?
- Interview - Loch Lomond GTR head Andre de Almeida
- Trump, local spirits and the IR role - The Analyst
- Absolut and Smirnoff's conflicting Millennial view
- Beam Suntory opens global headquarters in Chicago
- Diageo wine assets integration head to leave TWE
- Absolut not "sufficiently focussed" on Millennials
- Molson Coors names UK & Ireland managing director
- TWE renames Blossom Hill fruit wine range