S&N deadline extended as takeover talks continue

Scottish & Newcastle (S&N) has been given an extra 24 hours to try and thrash out a recommended 800p-a-share takeover bid by Carslberg and Heineken.

The Takeover Panel confirmed it had agreed a further day's extension to the 'put up or shut up' deadline for Carlsberg and Heineken to table a firm offer. The extension was granted this morning at the request of S&N's advisers after all-night talks with the consortium failed to finalise the terms of a takeover.

In a statement to the Stock Exchange aiming to quell City speculation that the deal was faltering, S&N said: "In agreeing to this extension to the deadline, the consortium has reaffirmed the price at which it is contemplating an offer is 800 pence per share, confirmed that its due diligence is complete, that it has reached an agreement with the trustees of the UK pension fund and that its financing is fully committed."

The deal would value S&N's global business at £7.8bn. The proposed carve-up of S&N's operations would see Dutch brewer Heineken take control of S&N's UK operations, including ownership and supply of core pub brands including Foster's, John Smith's and Bulmers.

For Carlsberg, the main prize is full control of Baltika brewer BBH, the fast-growing Russian business it runs as a joint venture with S&N. The Danish brewer also hopes to take control of the Kronenbourg brewing business in France.