Offer for S&N may increase

January 16, 2007: The Carlsberg Heineken consortium is set to up its offer for Scottish and Newcastle (S&N) to 800p a share, the news agency Reuters has reported. The consortium had its last bid of 780p rejected.

Scottish and Newcastle is trying to get back 50% of Baltic Beverage Holdings (BBH) which it owns jointly with Carlsberg, claiming the latter has broken the terms of their joint agreement. Carlsberg, however, seems keen to gain control of S&N and, therefore, gain complete control of BBH.

The consortium has been given until January 21 to make a formal bid for S&N or walk away from the table.

Global giant Anheuser-Busch, brewer of Budweiser, is reported to have approached S&N in a bid to help it take full control of BBH. Meanwhile, The Sunday Times reported this week that private equity groups Blackstone and the TexasPacific Group have also made approaches for S&N.