Waves of spin off wine by Foster on report of Chinese interest

By Victoria Thieberger

MELBOURNE. Monday, July 4, 2011 12: 00 am EDT

MELBOURNE (Reuters) - dans Division of Treasury Board Wine Estates Ltd. Australia (TWE.)(AX) sweeps 11 percent to a record Monday, valuing winemaker second in the world with $ 2.6 billion, following a report that Bright Food Group China is considering a bid for the company.

Wine of the Treasury Board, with brands including Penfolds, Rosemount and Beringer, separated by group of Foster (FGL.)(AX) in May to its shareholders after the Brewer failed with a wine expansion which resulted in almost a 3 billion ($3.2 billion) of write-downs.

Following the split, the two companies were considered as potential takeover targets and Foster has already rejected an offer for the purchase of 10 billion dollars of brewing giant SABMiller (SAB.)(L).

Bright food could bid for assets of wine from the Treasury Board and make good use of its existing distribution, large network mainly in supermarkets, an analyst with Shanghai.

"It can also the goal of expansion into the Affairs of sale high wine range in some areas where the red wine company is seen enjoying stronger than dairy growth potential,"said the analyst, who declined to be identified by the policy of the company.""

Deprived of food Bright has been hampered in a bid of $ 1.7 billion was for CSR (CSR.)(Company sugar AX) last year and also was left in a war of auctions for the French Yoplait yogurt manufacturer in March.

The creator of the brand of Chinese candy "big white rabbit" has interests which cover agriculture, food and beverage production and retail sales and said he wants to buy goods from abroad.

Treasury wines shares rose as much as 11.3% to record a $ 3.75, valuing the company at $ 2.4 billion. Shares rose 8.6% to 0437 GMT (12: 37 pm EDT). They gained 14% since the start of trade on May 11.

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Wine of the Treasury Board, second company of wine in the world behind Constellation Brands (STZ.)(N), owns vineyards of the Hunter Valley near Sydney in Napa California Valley.

A wine of the Treasury Board spokesman declined to comment on the move on the part or the Bright report, saying that he was "business as usual" to the company.

In response to a request from the Australian Stock Exchange, wine of the Treasury Board has said that he was not aware of any other information which might explain the jumping of the part.

A spokesman for food Bright in Shanghai refused to comment on the report.

When Foster's still owned by the winery last year, he dismissed a considered approach to control of surprise to the value of business wine up to $ 2.5 billion of private equity us Cerberus Capital Management.UL CBS Corporation as too low.

The wine company is rated a on the books of Foster $ 3.1 billion, about half what the company spent on acquisitions to expand over the past ten years at the top of the market.

The last depreciation of $ 1.3 billion last year took the total value of depreciation on assets wine of almost $ 3 billion.

A rising currency has been constant evil at the head of the company during the past years, cutting into earnings of the United States to Beringer Wine when retranslated in local currency.

China accounts for two-thirds of the Australia wine exports to Asia, or 6.3 million of $ 9.8 million, after a period of rapid growth, according to research by Goldman Sachs analysts.

Analysts, said that the Australian wine industry exports more high range wines, costs more than $10 per litre in China than in any other country.

The Australian Government figures show that China is the fourth wine export market behind the United Kingdom, the Australia, the United States and the Canada.

Analysts say that unlike the beer industry, which is considered as saturated in China, there is enormous potential for growth in the market of red wine, helped by the support of the central Government.

Foster decision year last to split wine and beer was widely seen as a move to make each business more attractive to possible contenders, although the company denied.

"Had no intention at all in the demerger of the company to defend in a takeover," Pollaers of John for the CEO of Foster said television Australian Broadcasting Corp Sunday.

Bloomberg News reported Friday that food Bright was internal, talks about making a bid, citing two people familiar with the case.

One of the most important companies of redemption of Australia, field, pull operations of wines of Australia and British Constellation in December for $ 230 million, betting on a recovery in the cycle of the wine.

(Other reports by Melanie Lee in Shanghai and Donny Kwok in Hong Kong.) (Editing by Ed Davies and Vinu Pilakkott)