Scottish & Newcastle rejects improved bid from Carlsberg and Heineken

17 November 2007

Scottish and Newcastle(S&N), the Edinburgh-based British brewer, has rebuffed an improved takeover bid from rivals Carlsberg and Heineken, who have ganged up to acquire its business. (See: Brewers Carlsberg, Heineken gang up against Scottish & Newcastle; S&N taking evasive action)  

S&N''s rivals, beer-makers Carlsberg of Denmark and Heineken of the Netherlands'' had upped their initial offer of 720 pence to 750 pence per share for S&N, which the UK brewer dismissed as its rivals attempts to buy it "on the cheap", while rejecting the offer as "wholly inadequate".

In a communiqué, S&N said, "Scottish & Newcastle plc has today received and rejected a highly conditional proposal from Carlsberg A/S and Heineken N.V., to make a marginally increased offer for S&N at 750 pence per share."

John Dunsmore, chief executive, S&N, said, "The consortium''s proposal significantly undervalues S&N''s brands and market positions. We particularly object to Carlsberg''s refusal to allow agreed information about BBH''s prospects to be released."

The two raiders said that their new offer valued S&N at an equity value of £7.3 billion, placing an enterprise value of around £9.7 billion.

Jean-Francois van Boxmeer, chairman and chief executive Heineken, said that the increased offer represented "a very attractive opportunity for S&N shareholders to obtain a price which is materially higher than the standalone value of the group,"