S&N Tell Bidders To ‘Put Up or Shut Up’

Brewing giants Heineken and Carlsberg have been served with a put up or shut up notice by regulatory body the Takeover Panel today on the application of Scottish & Newcastle, following the ongoing speculation of their interest in acquiring the firm.

The two major brewing companies had been acting in consortium in the approach to takeover Scottish & Newcastle, which would subsequently see the business split up into different business divisions, apportioned between the consortium bidders.

However following the outright rejection of the last bid put forward by the consortium in November, valued at 750p per share, Scottish & Newcastle approached the Takeover Panel to try to resolve the matter one way or another, and to avoid the unrest created by continuing speculation.

Scottish & Newcastle is the largest independent brewery in the UK, and is responsible for a number of high profile drinks brands both domestically and abroad, including Fosters and Kronenborg. The Takeover Panel’s deadline will see the consortium forced to make a bid by the third week of January at the very latest in order to secure their interest - otherwise any takeover move will be blocked.

The situation between the two sides turned sour shortly after the initial offer, with allegations of trying to purchase ‘on the cheap’ what Scottish & Newcastle considers to be one of its strongest assets in its foothold in the Russian alcohol market with company BBH.

Speaking today on the Takeover Panel announcement, the consortium of bidders has said that it will now look to get down to talks with Scottish & Newcastle over what would be a suitably priced offer, with a view to closing the deal as soon as possible.

However it is thought that Scottish & Newcastle may still yet prove reluctant to sell to their major brewing rivals.

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