S&N move to force its suitors’ hands
Dec 17 2007 by Peter McCusker, The Journal
SCOTTISH & Newcastle is said to be planning to ask takeover watchdogs to give suitors Carlsberg and Heineken a “put up or shut up” ultimatum this week.
The group, which also makes Kronenbourg 1664, is reported to be preparing to call on the Takeover Panel to issue a deadline for its takeover hopefuls to make a formal offer or walk away.
The Carlsberg and Heineken consortium approached S&N in October, but has yet to table a bid. It has proposed two indicative offers – the first in October for £6.8bn and the second for a higher 750p-a-share, valuing the group at £7.3 billion.
But S&N has snubbed both proposals, blasting the most recent as an attempt to buy the firm on the cheap.
The Edinburgh brewer has been keen to fend off the unwanted attentions of its Danish and Dutch rivals. It said it had no hesitation in rejecting the November approach and has since then set out plans for a leaner business as it steps up its defence.
A deadline from the Takeover Panel would see Carlsberg and Heineken forced to mount a bid within around four to six weeks.
If they failed to do so within the time frame, they could be barred from making another approach for another six months at least, or until another bidder makes an offer.
