John Elliott Compares Napoleon’s Abdication With Foster’s Decline

Today the 22nd June is an important date for both the French and all Australian’s. On the 22/6/1815 Napoleon Bonaparte finally abdicated (for the second time) as France’s Emperor following his defeat at  the Battle of Waterloo by the  Duke of Wellington. Today, Wednesday 22/6/11 it became evident, after reading this mornings newspapers that Foster’s inept Board will also suffer defeat at the hands of SAB Miller, a sad day for Australia.

I was staggered to learn that the Fosters Board  and Millers apparently had no intention to inform the market of Miller’s takeover proposal, no doubt relying on the ASX non-disclosure exclusions for incomplete and conditional proposals. However, they were forced to do so when the Coca Cola Chairman correctly advised Foster’s they were immediately announcing to the ASX their revised shareholder arrangements with Millers on their Pacific Brands brewing and beverage joint venture regarding Miller’s rights to acquire Coca Cola’s 50 % joint venture interest if they gained control of Fosters within 5 years. Fosters would have been severely dealt with by the regulatory authorities if they didn’t make an announcement, but Coca Cola did.

It appears that  the  Foster’s Board, despite the numerous takeover rumours already in the public domain were caught on the back foot and not properly prepared nor properly advised .

They have in effect, raised the white flag like Napoleon did 196 years ago when defeat was inevitable.

John D Elliott