Carlsberg and Heineken Express Scottish & Newcastle Disappointment

Brewers Carlsberg and Heineken have today hit back at takeover targets Scottish & Newcastle after their blanked rejection of a revised bid of 750p a share launched for the business yesterday, which they described as ‘hasty’ and ‘ill-informed’ given the value of the business.

Scottish & Newcastle were yesterday swift to dismiss a revised offer from the major brewery companies in consortium worth 750p for each share as too little to be considered. However Carlsberg and Heineken today seemed less than happy with the decision which it deemed to be suitably valued.

Heineken and Carlsberg were initially reluctant to improve their offer for the business after an initial 720p per share bid was rejected outright. However central to the negotiations are Scottish & Newcastle’s strong position within the growing Russian brewery market through major brewer Baltika, in which it owns an 85% stake indirectly.

Scottish & Newcastle have been determined not to accept less than they perceive as their true value, and have dealt allegations that their major brewing counterparts are attempting to buy over their assets for less than they are actually worth. However Carlsberg and Heineken said their actions had been misinterpreted by the largest British independent brewery, and that they should reconsider the offer made officially yesterday.

Scottish & Newcastle today suggested the bid made was far less than adequate, despite the fact that the potential bidders were certain the value of their offer was substantial. In a statement delivered to the London Stock Exchange the suitors expressed their disappointment at the tone of the response delivered yesterday.

The management of both Carlsberg and Heineken have asked to meet with the board of Scottish & Newcastle in order to further negotiate any particular takeover bid. However it seems unlikely that the consortium will be prepared to increase their bid much further in light of the reaction from Scottish & Newcastle.

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