S&N enters discussions with Carlsberg & Heineken

Scottish & Newcastle has agreed to enter into discussions with Heineken and Carlsberg over its takeover bid after the companies increased their offer to 800 pence per share.

The Edinburgh-based brewer dismissed previous advances by the two companies, known as the Consortium, stating that the last offer of 780 pence per share "undervalued" the company.

However, the increase of 20 pence per share, to be funded by Carlsberg, led S&N to announce they would enter into negotiations today.

A "put up or shut up" deadline of Jan 21, set by the Takeover Panel, has also been extended to noon on Jan 24.

Carlsberg said the proposal was subject to certain pre-conditions, including satisfactory completion of limited due diligence and S&N advised its shareholders that there was "no certainty" that a formal offer will be made.