Heinekens option are getting "limited", according to analysts UBS

Heineken's option are getting "limited", according to analysts UBS

Heineken would be "too stretched" to make a counter bid for Fraser & Neave alone and could seek a partner with property interests, according to an analyst. 

Earlier today, ThaiBev announced it will mount an SGD9bn (US$7.2bn) offer for the Singapore conglomerate. If the deal goes through, it could see ThaiBev block Heineken's attempts to take full control of Asia Pacific Breweries

Analysts UBS said the Dutch brewer's options are "getting more limited" following today's developments. "Heineken could seek a partner with an interest in F&N’s property business, Fraser Centrepoint, and launch a counter bid on F&N," it said in a note.  

"Without a partner with an interest in property, we believe Heineken’s balance sheet would be too stretched to counter bid, without issuing shares." 

But if ThaiBev's F&N bid goes through, Heineken will be "forced" to work with the Chang brewer, UBS said. 

The analysts added: "Heineken could also try to split up the APB JV assets, which could be value destructive in our view."