Foster’s target Southcorp shareholders

The Foster’s Group chairman has personally urged Southcorp shareholders to accept his company’s takeover proposals.

In a one-page letter attached to Foster’s formal bidder’s statement, chairman Frank Swann said ‘I strongly encourage you to accept this offer.’

Southcorp directors have been dismissive of the proposed AU$4.17 per share bid, urging shareholders to reject last month’s prosective offer.

Foster’s, however, believes the Australian wine company’s current asking price of AU$4.40 to AU$4.50 is inflated.

‘In the absence of takeover speculation, Southcorp’s share price would be significantly lower than the offer price,’ Swann said.

‘In order for Foster’s or someone else to succeed, a price of something north of AU$4.17 needs to be paid,’ Southcorp fund manager Paul Xiradis said last week.

Written by Oliver Styles and agencies