S&N rejects higher bid approach

Scottish & Newcastle has rejected an improved 780p-per-share bid proposal from Carlsberg and Heineken that values the UK-based brewer at £7.6 billion plus debt, with S&N saying the latest offer still undervalued the company. It said that it would it would be willing to talk to the firms about a bid of at least 800p per share.

Carlsberg and Heineken had proposed a 720p-acquisition offer, in October (See: Brewers Carlsberg, Heineken gang up against Scottish & Newcastle; S&N taking evasive action),
They raised their bid in November to 750p (See: Scottish & Newcastle rejects improved bid from Carlsberg and Heineken), prior to the current increase.

The UK Takeover Panel has set a deadline of 21 January for Carlsberg and Heineken to either make a formal bid or abandon the proposed acquisition for six months.

Carlsberg said that the consortium would not make a hostile bid and called on S&N shareholders to support the improved proposal.

The UK Takeover Panel has given the Carlsberg-Heineken consortium a deadline of 1200 GMT on 21 January.