Scottish and Newcastle snubs possible bid from Carlsberg, Heineken

0 Comments | AFP, October, 2007

LONDON (AFP) — British brewer Scottish and Newcastle on Wednesday reacted angrily to news of a potential joint takeover offer from Danish beer group and business partner Carlsberg, and Dutch peer Heineken.

Scottish and Newcastle, whose top-selling beverages include Foster's, Kronenbourg 1664, John Smiths and Strongbow, said that a possible break-up bid was "unsolicited and unwelcome."

However, the company's share price jumped by almost a fifth as analysts praised the strategic benefits of a deal.

"Carlsberg and Heineken confirm that they are in discussions regarding the formation of a consortium to make an offer for the entire issued share capital of Scottish and Newcastle," the pair said in a statement earlier Wednesday.

The beer giants said they...