The Australian dollar’s upsurge has affected Foster’s beer business, subjecting the company to a shareholders’ vote by month end that will divide the company in to halves. SABMIller shows interest on the great divide.

Shareholders of the company expect the split to put an end to the legacies and costly fees Foster’s spends on external consultants. In addition, shareholders look forward to a start of improved performance as consequence of the action.

The company’s scheme of arrangement booklet revealed a $66.2 million cost for the preparation and distribution of the booklet and other fees in connection with the demerger.

Investors of the company can not help but raise their eyebrows on high costs which go to its legal advisers. For one, Corrs Chambers Westgarth received $10.2 million payment for its Australian legal and taxation advice. Law partners receive a stipend of $650 an hour.

Grant Samuel obtained $800,000 for putting out the independent experts’ report, while Goldman Sachs and Gresham Partners billed the company $51.9 million for advisory and transfer costs.

Separating the company’s IT platform will cost Foster’s $42 million as its demerger was highly complex and highly legal provided with the tangled web of company structures. The beer and wine businesses will remain joined at the hip until June 2013 because of these intricacies.

Since the core operation of each business, including orders, delivery, receivables and sales, are interconnected on one platform, bidders would find it difficult to buy the beer or wine business.

The majority of the beer and wine companies these days have abandoned this tradition with the exception of BHP Billiton and Lend Lease.