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Melbourne (ANTARA News/Asia Pulse) - Foster's Group Ltd (ASX:FGL) chief executive Trevor O'Hoy has resigned, as the global beverages company downgraded its earnings and flagged writedowns of up to A$700 million (US$663.95 million) on the value of its underperforming wine assets.

Mr O'Hoy has taken responsibility for the poor performance of the wine business, which was mostly created from the A$2.6 billion acquisition of Beringer in the US in 2000 and the A$3.2 billion acquisition of Southcorp in Australia in 2005.

Foster's admitted today it had paid too much to acquire wine assets and that it was reviewing the operation, which could lead to asset sales. Mr O'Hoy, who was appointed in March 2004, has agreed to help the company through its transition to a new boss.

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