IS FOSTER’S GETTING AHEAD OF ITSELF?

Merrill Lynch is wary of Foster’s Group’s projection that the company will earn A$0.31 per share for fiscal 2006. The Australian wine industry will not likely improve anytime soon and is slated to “get worse before they get better.” This year’s grape crush is looking even bigger than 2005 and will probably continue that pattern in 2007. Pricing will likely get worse and make it “extremely difficult” to assimilate Southcorp.