Fosters - Possible takeover

A rise in the price of Foster's Group shares on 16 May 2002 has sparked takeover speculation in Australia. The companies mentioned as possible predators are British liquor majors, Diageo and Allied Domecq. However, analysts downplayed the speculation, suggesting the 28.7 million share trade was the result of portfolio readjustments by institutional investors. Foster's share price gained $A0.09 to close at $A4.81. On 14 May 2002, the stock was worth $A4.63. Broker, Morgan Stanley, alone bought more than 20 million shares. The takeover speculation was fanned by news that on 15 May 2002, Allied Domecq announced an imminent debt raising exercise.