S&N rejects Carlsberg offer

Edinburgh-based Scottish & Newcastle (S&N)   has turned down a conditional cash offer from brewing firms Carlsberg and Heineken. In a statement recently released, Scottish & Newcastle said: "The board, having consulted its advisers, has no hesitations in rejecting this proposal."

In mid-October, Carlsberg and Heineken stated they were in talks to form a consortium for acquisitions.  When Carlsberg and Heineken confirmed that they has intentions to buy S&N, Scottish & Newcastle said any forthcoming bid would be "unwelcome" and that it was committed to being an independent firm. Sir Brian Stewart, the firm's chairman, said: "We will continue to take all actions to maximise shareholder value. I strongly urge shareholders to take no action."

The chairman added that the absurd move was a way to get S&N assets, such as Foster's and Newcastle Brown Ale, on the cheap and that the 720 pence-a-share offer 'substantially undervalues the strength and market value of S&N.' Scottish & Newcastle is the largest UK-owned brewing company.