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| Version 2 | Version 3 |
|---|---|
| Bid plan for Scottish & Newcastle | Bid plan for Scottish & Newcastle |
| (about 2 hours later) | |
| Brewing giants Carlsberg and Heineken have said that they are in talks about forming a consortium to buy Scottish & Newcastle (S&N). | Brewing giants Carlsberg and Heineken have said that they are in talks about forming a consortium to buy Scottish & Newcastle (S&N). |
| They said there was no guarantee an offer would be made for the firm, whose brands include Foster's, Kronenbourg 1664 and Newcastle Brown Ale. | They said there was no guarantee an offer would be made for the firm, whose brands include Foster's, Kronenbourg 1664 and Newcastle Brown Ale. |
| S&N said any forthcoming bid would be "unwelcome" and that it was committed to being an independent firm. | S&N said any forthcoming bid would be "unwelcome" and that it was committed to being an independent firm. |
| Edinburgh-based S&N is the largest UK-owned brewing company. | Edinburgh-based S&N is the largest UK-owned brewing company. |
| Break-up plans | Break-up plans |
| "S&N is confident in its future as an independent group with a combination of strong growth in emerging markets and cash generation in developed markets," it said. | "S&N is confident in its future as an independent group with a combination of strong growth in emerging markets and cash generation in developed markets," it said. |
| I think from a strategic point of view it's obviously a good deal for Heineken and Carlsberg SNS Securities analyst Richard Withagen | I think from a strategic point of view it's obviously a good deal for Heineken and Carlsberg SNS Securities analyst Richard Withagen |
| "S&N strongly urges shareholders to take no action at this time." | "S&N strongly urges shareholders to take no action at this time." |
| If Denmark's Carlsberg and Holland's Heineken do go ahead and make a bid, their plan is to split S&N between them. | If Denmark's Carlsberg and Holland's Heineken do go ahead and make a bid, their plan is to split S&N between them. |
| Heineken would take control of S&N's main business in the UK, and some other European markets. | Heineken would take control of S&N's main business in the UK, and some other European markets. |
| While Carlsberg would take over S&N's operations in France and Greece. | While Carlsberg would take over S&N's operations in France and Greece. |
| Carlsberg would also gain full control of Russia-based brewer Baltic Beverages Holdings, which is currently jointly owned by it and S&N. | Carlsberg would also gain full control of Russia-based brewer Baltic Beverages Holdings, which is currently jointly owned by it and S&N. |
| Boss leaving | Boss leaving |
| S&N has long been seen as a possible takeover target, and its shares closed up nearly 19% at 756p on news of the bid approach. | |
| S&N BRANDS KronenbourgFostersStrongbowNewcastle Brown AleJohn Smith's | S&N BRANDS KronenbourgFostersStrongbowNewcastle Brown AleJohn Smith's |
| Carlsberg and Heineken had both been named as potential individual bidders in the past. | |
| Diageo and SABMiller are other drinks firms which have been linked with a possible takeover. | Diageo and SABMiller are other drinks firms which have been linked with a possible takeover. |
| Earlier this year, Carlsberg restructured, giving it more scope to raise capital and therefore take part in merger or takeover activity. | Earlier this year, Carlsberg restructured, giving it more scope to raise capital and therefore take part in merger or takeover activity. |
| Last month, S&N's chief executive Tony Froggatt said that he was calling time on his career at Britain's biggest brewer. | Last month, S&N's chief executive Tony Froggatt said that he was calling time on his career at Britain's biggest brewer. |
| He will be succeeded next month by John Dunsmore, currently head of the company's UK and European brewing operations. | He will be succeeded next month by John Dunsmore, currently head of the company's UK and European brewing operations. |
| Strategic move | Strategic move |
| One analyst said he believed Scottish & Newcastle investors would not be willing to sell for anything less than 750p a share. | One analyst said he believed Scottish & Newcastle investors would not be willing to sell for anything less than 750p a share. |
| "It is early days, but clearly Scottish & Newcastle is in play and the market is reacting very strongly to this," said Clem Chambers, from investor website ADVFN.com. | "It is early days, but clearly Scottish & Newcastle is in play and the market is reacting very strongly to this," said Clem Chambers, from investor website ADVFN.com. |
| Fellow analyst Richard Withagen of SNS Securities said a joint Heineken-Carlsberg takeover of S&N would make good sense. | Fellow analyst Richard Withagen of SNS Securities said a joint Heineken-Carlsberg takeover of S&N would make good sense. |
| "I think from a strategic point of view, it's obviously a good deal for Heineken and Carlsberg," said Mr Withagen. | "I think from a strategic point of view, it's obviously a good deal for Heineken and Carlsberg," said Mr Withagen. |
| "Heineken would gain market leadership in the UK and become the number two in Belgium and Portugal and a leading market player in Finland." | "Heineken would gain market leadership in the UK and become the number two in Belgium and Portugal and a leading market player in Finland." |
| S&N was the world's seventh largest brewer in 2006 in terms of total sales volumes. Heineken and Carlsberg were ranked fourth and fifth respectively. | S&N was the world's seventh largest brewer in 2006 in terms of total sales volumes. Heineken and Carlsberg were ranked fourth and fifth respectively. |