Archive for January 10th, 2008

 From the Morning Advertiser:

Scottish & Newcastle (S&N) has rejected a revised bid of 780p a share from Carlsberg and Heineken.

Newcastle Brown Ale sixpackBut S&N said it would be willing to talk if a bid of 800p a share was made by the Consortium.

The revised offer values the British brewer at £7.6bn.

S&N said that it had considered the improved proposal carefully but felt that it still failed to reflect the “unique strengths and markets positions” of the group, and failed to be “competitive with the alternatives the company can pursue for delivering value to its shareholders”.

Jean-François van Boxmeer, chairman of the executive board of Heineken said: “It is decision time for S&N shareholders. Without the S&N Board’s co-operation there will no offer by the Consortium.

“Our increased 780p proposal is the only deliverable opportunity today for shareholders to realise a material premium to the independent value of S&N.”

Jørgen Buhl Rasmussen, president and chief executive of Carlsberg, said: “The Consortium’s increased proposal represents a very generous proposition to S&N shareholders by any measure.

Seems to me they are getting closer to an agreement. This would mean the most for Carlsberg, with the Russian market being the only part of Europe where there is any growth to speak of. I think there are limits to what Heineken will pay for a share of the falling British market.

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