What the Sunday papers said - 02 December
The Sunday Times
Heineken has regained pole position in the race for Carling, Britain's biggest selling lager, which has been put up for sale by Interbrew. Some analysts believe SAB will re-enter the auction. A successful bid would act as a poison pill to block an SAB takeover by Interbrew, the £7.8bn quoted Belgian brewer. (Read more about Interbrew's bid for SAB on thePublican.com)Constellation has reached the last round of bidding as have a handful of private-equity groups including Cinven and CVC. (Read more about Constellation's offer for Carling on thePublican.com)
In a seperate profile piece, Graham Mackay, the chief executive of South African Breweries, says he envisages a future where his company will merge to become the Coca-Cola of the beer world. Such a "dream" deal, according to one analyst, would be to merge the businesses of SAB, Scottish & Newcastle and America's Miller Brewing, although Interbrew may have other ideas.
The sharewatch column says Six Continents is a long-term buy. Its multi-billion cash pile means it is strongly positioned to buy up weaker competitors in the hotel market and, because 45% of revenues come from pubs and restaurants, it is not as exposed to decreased global travel as other hotel operators.
The Sunday Telegraph
Hotel and pub group Six Continents is planning to make a £5.5bn bid for Starwood Hotels and Resorts, the US hotels group that owns the brands including Sheraton and Westin. The deal would create a £10bn hotels group. The group has a £4bn cash pile for acquisitions. Much of this came from the £2.3bn sale of Bass Brewers to Interbrew last year.
The Observer
The Observer counters the Carling speculation by claiming that Blackstone, the US private equity group, has emerged as the leading contender to acquire Britain's best selling beer. Blackstone has beaten off competition from Constellation Brands, and the only wild card in the pack is Heineken, which is expected to up its offer.
The Sunday Express
Britain's biggest City scandal returns to haunt the Serious Fraud Office today as four businessmen embroiled in the "Guinness Affair" appeal against their convictions. The four were convicted of ramping the company's share during a vicious takeover battle with Argyll for the Distillers company in the late Eighties.
The Mail on Sunday
Laurel Pub Company had hoped to sell its 14-strong Dome chain as a single package but instead has had to sell the outlets individually. Deals are expected to be completed this week. Laurel will retain four of the largest Dome cafes, most of them in central London, and is rebranding them as part of its Casa bar chain.
Sunday Business
British brewer Scottish & Newcastle has emerged as one of the potential victims of a mooted merger of Interbrew and SAB, maker of Castle Lager. The specualtion has bought S&N's role in the quickening consolidation of the global beer market sharply into focus, and the management can expect a grilling when it announces interim results on Tuesday. Analysts think it likely that within another year both SAB and S&N will be part of a bigger organisation, in some shape or form.
Heading for the pub can be good for both business and staff relations says the Paper's Executive Briefing section. Some industries, such as advertising and the media, indulge in the pub ethic more than others, but the pub is an acceptable part of British business culture. While not exactly a deal done over a pint in the Dog & Duck, a famous example of this was Lord MacLaurin and Chris Gent cooking up Vodafone's plan to acquire AirTouch while in the hospitality box at the Sydney Cricket Ground one Boxing Day.
The Independent on Sunday
No industry-related news.
