FOSTER'S Group Ltd, Australia's biggest beer and wine maker, has named former Cadbury Plc executive Ian Johnston as chief executive officer as it considers the future of its global wine unit.

The appointment is effective immediately, Melbourne-based Foster's said in a statement yesterday obtained by Bloomberg News.

Johnston, appointed to the board 12 months ago, has been acting CEO since July after the departure of Trevor O'Hoy.

Johnston takes charge as his Chairman David Crawford continues a review of the wine business, the world's largest behind Constellation Brands Inc, which cost A$6.8 billion (US$5.7 billion) and 10 years to create. The appointment comes a day after Deutsche Bank AG disclosed a 5.3-percent stake in Foster's, amid speculation the Australia company may be acquired.

"It's quite a challenge to take on Foster's," said Theo Maas, who helps manage US$5 billion of equities at Fortis Investment Partners in Sydney, including beverage stocks. "He hasn't been involved in acquiring the wine assets which makes it a lot easier to make a decision on whether to demerge or sell them."

Foster's shares rose 5.8 percent, to A$5.66 at the close of trading in Sydney, valuing the company at A$10.9 billion. The stock has gained 22 percent since Johnston took the interim role on July 21.

The gain has increased Foster's valuation to 15 times estimated earnings.