Australian beer and wine company, Foster's Group, is reported to be in talks with the Californian wine group, Ceccehetti-Sebastiani, regarding a possible takeover of the US wine producer.

Foster's would not comment on the speculation but a report in the Australian Financial Review, citing the Wine Market Report, suggested the two companies were in the final stages of agreeing the deal.

Credit Suisse First Boston commented that an acquisition of Ceccehetti-Sebastiani would fit with the strategy of the group's Beringer Blass wine subsidiary.