S&N agrees to talk to Carlsberg/Heineken over bid offer

Scottish & Newcastle (S&N) has finally agreed to sit down with Carlsberg and Heineken to discuss terms of a takeover, but only if there is a minimum offer of 800p a share on the table.

S&N last night rejected a revised bid from the pair of 780p a share, saying the "proposal was still subject to similar levels of conditionality as previous proposals received from the consortium.

"The board of S&N has met and considered this proposal carefully [and] concluded, having consulted its advisers, that it still failed to reflect the unique strengths and market positions of the company and again failed to be competitive with the alternatives the company can pursue for delivering value to its shareholders."

However S&N added: "The board has discussed with the consortium that it is prepared to engage with them, but only when a firm proposal of at least 800 pence per share had been made and when Carlsberg has agreed to the publication of proper information about BBH prospects.

Noting S&N's rejection of its 780p a share offer, Jean-Francois van Boxmeer, chairman of the Executive Board and chief executive of Heineken said: "It is decision time for S&N shareholders. Without the S&N Board's co-operation there will be no offer by the consortium.

"Our increased 780p proposal is the only deliverable opportunity today for shareholders to realise a material premium to the independent value of S&N."

Jorgen Buhl Rasmussen, president/chief executive of Carlsberg said: "The consortium's increased proposal represents a very generous proposition to S&N shareholders by any measure.

"Carlsberg has listened to shareholders and offered its co-operation with regards to further disclosure on Baltic Beverage Holding's (BBH) prospects and the consortium's proposal now implies a £4.2bn value on S&N's 50 per cent share of BBH.

"It's now over to S&N shareholders to make their views clear to the S&N board if they want this transaction to happen."