Blog: Olly WehringThe S&N rumour mill spins a little faster

Olly Wehring | 2 July 2007

The rumbling speculation surrounding Scottish & Newcastle and Carlsberg got a little louder last week. Although sceptics amongst you would be justified in pointing out that there is little there that we haven’t all heard before, the feeling here in just-drinks Towers is that there is more meat to the rumours this time round.

Of course, responding to reports that a “major deal is likely”, a spokesperson for Carlsberg remained staunchly tight-lipped when contacted by just-drinks. S&N’s “business as usual” quote, meanwhile, has been used so many times, the needle feels like it’s stuck on the record.

And yet, those in the know still believe that something is in the water here. In a research note, investment bank Dresdner Kleinwort suggested the likelihood of an acquisition of S&N by Carlsberg is at 70%. The key piece in the jigsaw is the Baltic Beverage Holding joint venture between the two brewers. The bank highlighted the delicate nature of the ‘Russian roulette’ clause in the companies’ BBH agreement and why this may be the trigger for a full takeover bid.

“The only way for Carlsberg to be certain of keeping its 50% stake in BBH is to own 100%,” Dresdner Kleinwort said. “The only way to get 100% is to buy S&N.”

Sounds like S&N may have to prepare volume two of ‘The Best of Business as Usual’.


BLOG

Make way craft, here come the indie brewers

Could it happen? According to this report, a section of the beer community wants to ditch the word craft. They prefer instead the term “Indie” for brewers they believe follow the enlightened path of t...

BLOG

Kent's dire warning puts Coca-Cola woes in the shade

The global elite were in Switzerland last week for the World Economic Forum in Davos, the annual corporate huddle for the rich and powerful. The CEO of The Coca-Cola Co, Muhtar Kent, was there too, de...

BLOG

PepsiCo wakes up and smells the latte

With The Coca-Cola Co stealing yesterday's limelight with its new united marketing strategy for brand Coke yesterday, a Forbes interview with PepsiCo North America Beverages' new CMO, Seth Kaufman, sl...

BLOG

Coke Life threatens Coca-Cola's united front

It is a bold attempt to regain a measure of control in the ever-spiraling debate about sugar. But will The Coca-Cola Co's new marketing strategy - which for the first time ties all of the Coke family ...

just-drinks homepage



Forgot your password?