S&N stands firm against latest consortium offer

14 January, 2008

Scottish & Newcastle has rejected Carlsberg and Heineken’s £7.6 billion proposal, saying it “undervalues” the company.

Despite difficult UK trading conditions, S&N’s fourth quarter results were positive, leading the brewer to stand firm against the takeover.

Although total beer and cider volume went down 2 per cent, sales were level year-on-year and the major brands’ volume and sales were up 1 per cent and 3 per cent respectively.

In a statement today, S&N today said it would not accept the 780 pence per share proposal from the Heineken/Carlsberg Consortium, because the 30 pence increase reflected currency movements.

It also said the offer “failed to recognise the proper value of BBH” as it called for more transparency from Carlsberg over the joint venture.

Chief executive John Dunsmore said: “We are totally committed to realising full value for our shareholders, however that may manifest itself. We have clearly stated the level at which we would engage with the Consortium and have again called for greater transparency on BBH. We would urge shareholders to continue to press the Consortium to co-operate in releasing the BBH information.”

The Consortium urged shareholders to “act now” and persuade S&N’s board to enter into "substantive dialogue" so a recommended offer can be accepted before the Jan 21 deadline set by the Takeover Panel.

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