Shares in the UK-based brewing group, Scottish & Newcastle (S&N), rose on the back of a rumour that the company has pulled out of the race to acquire the Colombian brewer, Bavaria, The Times has reported.

S&N's shares had experienced some volatility because of speculation that it might launch a bid of around £7bn for the Colombian brewer, even though it was always seen as an unlikely candidate.

However, having met with Heineken, German investment house, Dresdner Kleinwort Wasserstein, said it was now under the impression that the Bavaria battle is between Heineken and SABMiller.