Shares digital

The Heineken and Carlsberg consortium said they will not launch a hostile bid on Scottish & Newcastle after the UK brewer rejected its 780p per share proposal.

The consortium also urged the UK brewer's shareholders to call immediately on the S&N board of management to enter into substantive dialogue with the consortium. They wish to ensure a recommended offer before the 21 January deadline imposed by the UK's Takeover Panel.

It added that without a recommendation there will be no offer by the consortium and the proposal will lapse. S&N's continued refusal to accept the consortium's bid approaches, holding out for a higher bid, saw its shares rise another 9.5p, or 1.3%, in early trade to 728.5 pence.

S&N said earlier it has discussed with the consortium that it is prepared to engage with it, but only when a firm proposal of at least 800p a share has been made. It also demands Carlsberg publishes proper information about Baltic Beverages Holding's (BBH) prospects.

But the consortium said the S&N board's refusal to engage for its 780p proposal jeopardises significant value creation for S&N shareholders. Heineken and Carlsberg also said in a joint press release that the raised 780p per S&N share offer represents an implied equity value of £7.6 billion and an enterprise value of £10 billion.

'It is decision time for S&N shareholders. Without the S&N Board's co-operation there will be no offer by the consortium,' Heineken CEO Jean-François van Boxmeer said. But the consortium also said it reserves the right to proceed without a recommendation if an offer or possible offer for S&N is announced by a third party.

Carlsberg said it has confirmed to S&N that it is willing to provide the market with further financial disclosure on the current trading and prospects of its joint venture BBH, which Carlsberg operates on 50-50 basis with S&N.

Subject to the agreement of the BBH board, Carlsberg said it would be willing to either publish a 2007 profit estimate and forecast for 2008 or release a mutually agreed current trading and outlook statement for 2008-2010.