S&N rejects improved Carlsberg and Heineken bid

The offer, which amounts to £7.6bn in terms of equity value, is £293m higher than the consortium's previous bid, yet was still deemed by S&N's management to not reflect the true value of its unique strengths and market position. No hostile intentions ​​​​Despite the failure of the bid, the consortium said that it would not seek a takeover of S&N without the board's permission, though would not bind itself to the commitment: "If an offer or possible offer for S&N is announced by a third party."​ The rejection of the bid means there is yet no resolution to the ongoing battle between Carlsberg and Scottish & Newcastle to each wrestle full control of their profitable Baltic Beverages Holding (BBH) joint venture. Carlsberg and Heineken have been attempting to engage in talks with the S&N since October to acquire and split up its operations. A successful purchase would allow Carlsberg to claim all the shares in BBH. However, the latest offer comes just 11 days before a deadline that would prevent the consortium from making any further bids before an arbitration court rules whether Carlsberg will have to sell its shares in BBH back to S&N. Both Calrsberg and S&N have argued earlier this week that they are confident of winning the case, which will be decided at the Arbitration Institute of the Stockholm Chamber Of Commerce by 3 July. Consortium's decisive attempt ​​​​Carlsberg says that the 780 pence offer was meant as a decisive attempt by the consortium to open discussions over a transaction before the sale deadline can come into place. Of the increased £293m in funds for the proposed bid, Carlsberg supplied £244m - or 25 pence per share - to reflect the value of the BBH joint venture, while Heineken would have paid £49m five pence per share. The current bid valued BBH, which operates solely in Russia and a number of surrounding markets, at £4.2bn, the consortium said.