Modelo, Molson bid for Foster's looks unlikely: report
NEW YORK (Reuters) - A joint bid for Foster's Group Ltd FGL.AX by Grupo Modelo SAB de CV (GMODELOC.MX) and Molson Coors Brewing Co (TAP.N) looks unlikely after Modelo executives decided not to propose the move at a Monday board meeting, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.
Mexican brewer Modelo, which makes Corona beer, was expected to seek support from major shareholder Anheuser-Busch InBev (ABI.BR) at a meeting on Monday, a source familiar with the situation told Reuters on Friday.
But the Journal said on Monday that the complexity of a deal involving Modelo, half-owned by AB InBev, and Molson, which has ties to SABMiller PLC (SAB.L) through their U.S. joint venture MillerCoors, proved to be a hurdle.
What is more, some members of the families that make up Modelo's controlling shareholder group were against pursuing a joint bid for Foster's, the newspaper reported.
Officials for Foster's and Modelo were not immediately available to comment. Anheuser-Busch InBev and Molson declined to comment.