Carlsberg has had its recommendation raised. Dresdner Kleinwort Wasserstein yesterday (15 August) upgraded the Danish brewer to 'add,' saying that a nil-premium merger with Scottish & Newcastle was a possibility.

In a research note, the investment bank said: "We see a nil-premium merger with Scottish & Newcastle as by far the most likely outcome, bringing BBH (Baltic Beverages Holding - a 50:50 joint venture between the two brewers) under one owner for the first time since the early 1990s."

Dresdner also increased the target price for Carlsberg's shares to DKK380 from DKK315.

The investment bank maintained a 'hold' rating on Scottish & Newcastle shares and a 460 pence price target.