The Australian stock market was weaker at Wednesday noon, following a slide on Wall Street, but wine manufacturer Foster's Group Limited (ASX: FGL) was soaring on takeover news.

At midday (AEST) the benchmark S&P/ASX200 index lost 23.1 points or 0.51 per cent at 4550.1 points. The broader All Ordinaries index, meanwhile, had declined by 22.5 points or 0.49 per cent to 4590.5 points.

Among the sectors, financials gave off 1.1 per cent, while materials shed 0.5 per cent. Energy shares were 0.3 per cent lower.

On the Sydney Futures Exchange, the September share price index contract decreased 27 points at 4550 on a volume of 15,138 contracts.

Stock declines were unlikely to be caused by political factors in Australia, with the Gillard-led minority government preparing to govern, according to CMC Markets analyst David Taylor.

"The materials and financials were probably the worst hit, but it is largely due to general malaise rather than anything specific."

Wall Street fell overnight amid fears about European debt levels, and this was dragging the Aussie market, he said.

Meanwhile, Foster's stocks soared after it said it rejected a non-binding proposal to buy its Treasury Wine Estates wine assets for $2.3 billion to $2.7 billion.
Shares were recently trading up 29 cents, or 4.8 per cent, at $6.36.

Telstra looked up 1.4 per cent after the Labor Party won, allowing it to continue with a plan to acquire Telstra's network as part of a new national broadband network.

The four major banks were all in the red at 12.03pm. Commonwealth Bank lost 55c at $51.80. Westpac shed 36c to $22.67, while National Australia Bank dropped 24c at $24.16. ANZ was 26c down at $23.50.

The materials sector lost ground about half a per cent, with resource giant BHP Billiton giving off 47c or 1.22 per cent at $37.97. Rio Tinto slid down 87c to $73.48.