While I would still be very surprised to see Foster’s make a bid for Southcorp, the share price of the troubled wine producer has risen aboard speculation that some from of bid is likely. The buying price would be around $2.5 billion. Beringer Blass is confident that it can make Wolf Blass into a world-leading brand, and I see no reason why the Oatley family should entertain the thought of selling their substantial stake in Southcorp in these circumstances. This family has on several occasions stated its long-term desire to build the company, and I see no reason not to believe them. The other publicly listed Australian wine maker subject to conjecture at this time is Peter Lehmann, which is now perilously close to a formal takeover by Allied Domecq, which now owns 14.5% of the business. There has been little formal contact between the two companies, but the Lehmann share price has risen with the inevitable speculation. Peter Lehmann Wines Ltd has evolved from the business established by Peter Lehmann during the dark Barossa days of the 1980s when with fruit and wine hard to sell, the region was basically on its knees. Lehmann bravely took a stance to buy the fruit from the region’s traditional growers, in doing so taking huge risks and saving the livelihoods of many families. It remains to be seen just how loyal the shareholders close to the Lehmann family turn out to be if a full hostile take-over bid emerges.
