Scottish & Newcastle has given further explanation behind its decision to reject the latest takeover offer by Carlsberg and Heineken.

The two European brewers today (10 January) offered GBP7.80 per share for S&N, a GBP0.30 improvement on the last offer, made in November. S&N has rejected the latest proposal, ahead of a 21 January UK Takeover Panel deadline for a formal bid from Carlsberg and Heineken.

"The board of S&N has met and considered this proposal carefully," the company said. "The board concluded … that it still failed to reflect the unique strengths and market positions of the company and again failed to be competitive with the alternatives the company can pursue for delivering value to its shareholders."

Earlier this week, S&N said it would realise GBP100m (US$196.4m) per annum in savings, should it succeed in taking complete control of its Baltic Beverages Holding joint venture from Carlsberg. The UK brewer highlighted this, as well as "the depreciation of sterling against the Euro, Russian rouble and US dollar" since Carlsberg and Heineken's November offer. "(This) has the effect of boosting the value of S&N's international business in sterling terms," S&N said.

"S&N believes that a significant part of the increase in the consortium's proposal simply reflects this appreciation."

The UK brewer concluded that it would be prepared to open negotiations ahead of agreeing to a bid, should "a firm proposal of at least GBP8.00 per share" is made by the consortium.