UK: Scottish & Newcastle dismisses “unwelcome” Carlsberg, Heineken bid talk

Scottish & Newcastle has dismissed the possibility of a takeover bid from Carlsberg and Heineken.

The UK-based brewer said today (17 October) that, while it noted the announcement from Carlsberg and Heineken regarding the formation of a consortium to bid for S&N, it felt the proposed break-up is "unsolicited and unwelcome".

"S&N is confident in its future as an independent group with a combination of strong growth in emerging markets and cash generation in developed markets," S&N said in a statement to the London Stock Exchange.

"S&N strongly urges shareholders to take no action at this time. A further announcement will be made if appropriate."

Carlsberg and Heineken said earlier today that they were discussing the possibility of making an offer for S&N. "It is currently intended that Carlsberg will ultimately acquire Scottish & Newcastle's interest in (S&N's joint venture with Carlsberg) Baltic Beverages Holding, France and Greece and that Heineken will ultimately assume control of Scottish & Newcastle's business in the UK and other European markets," the brewers said.

The brewers noted, however, that no formal approach has yet been made to S&N. "There can be no certainty that an offer for Scottish & Newcastle will ultimately be forthcoming," Carlsberg and Heineken concluded.

A further announcement is expected "in due course".