S&N rejects improved Carlsberg and Heineken bid

By Neil Merrett

- Last updated on GMT

Related tags Carlsberg Stock market

The board of brewer Scottish & Newcastle has today rejected yet
another attempt by Carlsberg and Heineken to jointly acquire its
operations with an improved 780 pence per share bid, though it may
yet be forced to sell.

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.

Related topics Manufacturers Carlsberg Heineken

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