Foster's Group

The Australian Government has given the go signal to SABMiller in the company's plan to takeover the Foster's Group (FGL) for $9.9 billion. "The government welcomes foreign investment in Australia and continues to ensure that investments are consistent with Australia's national interest," Federal Treasurer Wayne Swan said.

Foster's (ASX:FGL) turned down an unsolicited conditional proposal of $4.90 per share in cash by SABMiller, which is an 8 percent premium from the company's last trading price of $4.53. The group says the offer is undervalued stating that "The board of Foster's believes that the proposal significantly undervalues the company in the context of a change of control and, as such, it does not intend to take any further action in relation to it."

Following its successful $11 billion demerger of Treasury Wine Estates, Foster's (ASX:FGL) will cut 50 redundant jobs from its Abbotsford brewery plant, as part of its efficiency improvement program.

The Supreme Court of Victoria has green lighted drinks giant Foster's (ASX:FGL) plan to split its beer and Treasury Wine Estates businesses into two separate arms. After nearly a year of negotiations, Foster's shareholders voted to approve the demerger at a meeting held on April 29.

Foster's (ASX:FGL) is going to split its its beer and wine divisions this week. The arrangement will be put on a shareholder vote at a meeting this Friday in Melbourne. The scheme will pave the way for offers by larger corporations.

Australian brewer, Fosters (ASX:FGL), has rejected a $2.7 billion takeover bid for its wine business as the Group seeks to demerge its wine and beer businesses. The Foster's board is currently on a roadshow across Europe when the offer came in from an unnamed international private equity firm. Their tour was temporarily suspended while they deliberated on the proposal before sending details of rejection back to headquarters.

Australia's second largest beer manufacturer, Lion Nathan (LNN), reaffirmed its annual profits forecast on escalating sales of its beers including XXXX Gold and Tooheys Extra Dry. Chief Executive Officer, Rob Murray's efforts have finally started to pay off in three years. For past three years, he had posted little or no profits at all since past three years and pushed all money towards advertising, marketing and promotion of its brands.