shareprice recovery may be longer then initially e

Southcorp managing director John Ballard said the three major shareholders - who together hold 40 per cent - believed the best value for them would come from backing management's recovery plans rather than any takeover.

The Oatley family with 18.8 per cent, value investor Maple-Brown Abbott with 11.7 per cent and Capital Group with about 10 per cent would have enormous sway should any predator try and make a tilt at the wine producer in the future.

Mr Ballard yesterday bypassed questions about whether he agreed with the market view that Southcorp's share price of about $3.28 contained a healthy takeover premium.

"We'll deliver the results and let the market value us," he said.

He rejected suggestions that global alcoholic beverages giants such as Diageo might simply be waiting for Southcorp to be fully restored to financial health and a growth path before pouncing.



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"I don't have a sniff of any of that," he said.

Mr Ballard said there had been no contact from any potential buyer of the business.

He said the Oatley family, Maple-Brown Abbott and Capital held the view that a Southcorp turnaround would bring the best value, rather than corporate activity.

"We have three major shareholders, each of whom believe that the best value to them will be management taking it to its full potential," Mr Ballard said.

He was committed to remaining as managing director of Southcorp "until the job is done".

"Not only will the turnaround be behind us, but the model for growth will be established and accepted," he said.

Mr Ballard refused to put a broad time frame on when he thought those two factors might be satisfied. But his personal preference is for an internal successor to take over.

Southcorp chief financial officer Steve McClintock declared yesterday he was not interested in pursuing a broader career as a chief executive.

Mr Ballard said the plans by Southcorp and Foster's to bump up spending on wine brands in the tough US market would help to stimulate growth in the bottled wine category.

"If the whole industry lifts up their spend, then I'm all for it," he said.

Southcorp signalled last week it would lift its advertising and promotional spend in the US by 37 per cent.