'No comment' on talk of raised offer for S&N

A spokesman for Carlsberg today declined to comment on reports that the Danish brewer and its consortium partner Heineken were set to increase their offer for Scottish & Newcastle (S&N) to £8 a share in the next few days.

The £8 figure is the 'golden key' to open the door to talks with S&N, but the consortium was today sticking to the line that 780p a share, valuing S&N at £7.6bn, "represented a full and fair offer".

As the January 21 Takeover Panel deadline - by which time the consortium either launches a bid or walks away - draws nearer, all parties in potentially the biggest takeover in the UK brewing industry for years have been marshalling their forces.

Yesterday S&N stated yet again that 780p undervalued the business, and despite reports of growing unhappiness from a number of its shareholders who it was said wanted the brewer to open up its books to the consortium, it again stressed that it was "committed to realising full shareholder value…however that may manifest itself".

Eight pounds a share is the minimum S&N would sit down for, those close to the situation have suggested, "as a starting price".

The UK brewer also said it had sent Carlsberg details of what it wants to publish concerning the trading performance of Baltic Beverage Holdings (BBH), which lies at the heart of the takeover dispute and awaited its consent.

S&N also noted its full year results remained in line with expectations.

An S&N spokesman said it was confident of its legal case over BBH, but refused to comment on whether private equity groups Blackstone and Texas Pacific had been courted with a view to taking a 25 per cent stake in the Eastern European joint venture it currently operates with Carlsberg.

S&N chief executive John Dunsmore said: "We would urge shareholders to continue to press the consortium to co-operate in releasing the BBH information."