Carlsberg - Heineken bid for Scottish & Newcastle turns hostile

Stung by the rejection of their enhanced 750 pence per share bid on Thursday 15 November, Carlsberg and Heineken have flayed the Edinburgh-based British brewer, Scottish & Newcastle''s rejection as being "ill-informed". (See: Scottish & Newcastle rejects improved bid from Carlsberg and Heineken)

S&N''s rivals, beer-makers Carlsberg of Denmark and Heineken of the Netherlands'' had raised 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".

While rejecting the bid as "wholly inadequate" and an attempt to buy it "on the cheap", S&N had said the takeover was "highly conditional" on full due diligence,  

Saying that the S&N had misunderstood their intentions, the two bidders criticised yjr UK brewer over the "tone and speed" of its response. They said that their due diligence would focus on S&N''s West European assets as it was their key separation assumption and demanded to meet with S&N''s board to clarify their "limited requirements".

If they succeed, the two raiders plan is to split the company with Heineken taking control of S&N''s main business in the UK and some other European markets, while Carlsberg would take over the operations in France and Greece.

In the bargain, Carlsberg would also gain full control of Russia-based brewer Baltic Beverages Holdings (BBH), a key S&N asset that controls over 85 per cent of Russia''s biggest brewer Baltika, in which S&N and Carlsberg have an equal ownership. And which Carlsberg wants to gain through the S&N acquisition.