Shares in beer and wine giant Foster's Group soared more than 10% to a record high on rumours of a possible takeover bid as the company reported a 27% increase in its annual net profit, reports The Australian.

Foster's Chief Executive Trevor O'Hoy said he was not surprised that there might be buyers interested in the company. The recent sale of rights to the Foster's brand in Europe and India, which netted almost A$1 billion in all, showed there was a ready market for premium beverages, O'Hoy said.

"People are prepared to pay big money for companies that have strategic value," he said.

InBev and SABMiller have declined to comment on the speculation that they want to buy Foster's, but analysts say any buyer would have trouble offloading the company's wine assets in the current industry climate of oversupply and tight margins.

The takeover bid rumours upstaged Foster's announcement of a 27% rise in net profit for the 12 months to the end of June, booking a bottom-line result of A$1.17 billion (already reported in delWine), compared with A$920 million a year earlier.

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