AUS: Foster's faces mounting wine losses - analyst
Goldman Sachs analyst Ian Abbott has warned that Foster's Group could slash the book value of its wine assets by a further A$700m.
Foster's in August cut the carrying value of its intangible wine assets by A$471m (US$314m) and reallocated A$575m of goodwill to its beer division.
"Given that the global economy has deteriorated in the six months since the previous review of carrying values, we believe there is a risk of further write-downs," Abbott said.
The company currently has $2.2bn of wine-related intangible assets on its balance sheet.
Foster's is expected to announce the findings of a wine division review on February 17, when it is scheduled to report its first-half profit.
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