EUR: S&N snubs Carlsberg, Heineken’s third, “decisive” offer

By | 10 January 2008

The Carlsberg and Heineken consortium has had a third proposed offer for Scottish & Newcastle rejected.

The two European brewers have today (10 January) tabled a GBP7.80 per share offer for S&N, a GBP0.30 improvement on its last offer, made in November. Carlsberg and Heineken have until 21 January to make a formal move for S&N before a UK Takeover Panel deadline excludes a move by Carlsberg and Heineken for six months.

Carlsberg has also bowed to demands from S&N for public disclosure of economic data relating to their joint venture in Eastern Europe, Baltic Beverages Holding. The Danish brewer said today that it would provide the market with "additional disclosure on the financial position of BBH" for 2008 - 2010.

Despite this, and the improved offer, which implies an equity value for S&N of GBP7.6bn (US$14.9bn), S&N has still not been tempted to the table, with the UK company's board declining to meet with the consortium.

Carlsberg and Heineken have warned that today's bid represented "a decisive attempt by the consortium to engage in substantive discussions with S&N", adding that they will not proceed with an offer without S&N's board's recommendation. "Without a recommendation, there will be no offer by the consortium and the proposal will lapse," the consortium said.

The consortium added the caveat that it would consider proceeding with a non-recommended move for S&N "if an offer or possible offer for S&N is announced by a third party".

"Carlsberg has listened to shareholders and offered its co-operation with regards to further disclosure on BBH's prospects and the consortium's proposal now implies a GBP4.2bn value on S&N's 50% share of BBH," said Jørgen Buhl Rasmussen Carlsberg's president and CEO. "It's now over to S&N shareholders to make their views clear to the S&N board if they want this transaction to happen."

Sectors: Beer & cider

Companies: Carlsberg, Heineken, S&N, BBH

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EUR: S&N snubs Carlsberg, Heineken’s third, “decisive” offer

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