UK: Scottish & Newcastle rating cut on unlikely Carlsberg bid

By | 13 September 2007

Scottish & Newcastle has had its share coverage downgraded, due to a potential takeover bid from Carlsberg now seeming "unlikely".

Merrill Lynch today (13 September) lowered its rating for the UK-based brewer to 'neutral' from 'buy'. The broker was reacting to comments made earlier this week by Carlsberg's CFO and deputy CEO, Jorn Jensen, who suggested that he has not yet seen a solid business case for a move to buy S&N.

In May, Carlsberg amended its charter, allowing leading shareholder the Carlsberg Foundation to dilute its stake in the brewer, whilst maintaining control of voting rights. The Foundation currently holds 51.3% share capital but will lower this to 25%, thereby freeing up around DKK45bn (US$8.23bn) in new capital.

Merrill also said that Jensen had emphasised that the charter switch had nothing to do with a potential bid for S&N, and that discussions to change its structure had been initiated years ago.

Sectors: Beer & cider

Companies: Carlsberg, S&N

View next/previous articles

Currently reading -

UK: Scottish & Newcastle rating cut on unlikely Carlsberg bid

There are currently no comments on this article

Be the first to comment on this article

Related articles

just the round-up - The week in drinks

The top ten most visited stories on just-drinks this week:

SCANDINAVIA: Maxxium juggles travel retail team

Maxxium has announced two appointments to its global travel retail team in the Nordic region.

UK: Cobra poaches from Beam Global, again

Cobra Beer has appointed another former Beam Global Spirits & Wine employee, this time to fill the newly-created role of on-trade channel controller.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page