The financial woes of Australia’s Southcorp wine group continue in the wake of its latest profit revision.
Ratings agency, Standard & Poor, has put it on a ratings watch for a downgrade and investors have sold its stock lower for seven consecutive days.
Since this week’s profit downgrade, Southcorp has been the subject of critical reporting in the Australian press which has also heightened speculation of a takeover bid possibly by the Fosters Group or Britain’s Diageo. This is in spite of the 20% shareholding held by the Oatley family to which Keith Lambert, Southcorp’s chief executive, is related by marriage.
