European brewers Carlsberg and Heineken are in talks about making a joint cash bid for £7.2 billion sterling (€10.3 billion) valued Scottish and Newcastle (S&N), they said today.
Shares in Britain's biggest brewer S&N jumped 20 percent to 762-1/2 pence by 1.10pm on the news, which comes after long-running market talk of a bid. Heineken shares were up 4.8 per cent at €48.17 and Carlsberg was 6.1 per cent higher at 803 Danish crowns (€107).
The move came after Reuters reported renewed talk of a bid which boosted the S&N shares in early trading today.
S&N confirmed in a statement that it had received no approach from the two European brewers and added the proposed break-up bid was "unsolicited and unwelcome" and it was confident of its future as an independent company
If an offer is made, Danish brewer Carlsberg intends to acquire S&N's interest in Russia-based brewer Baltic Beverages Holding, France and Greece, while Dutch Heineken would take control of S&N's business in the UK and other European markets.
Edinburgh-based S&N has been seen as a takeover target for many years with Carlsberg seen as the most likely suitor due to their joint ownership of the fast-growing BBH. Heineken is likely to be involved in order to address competition problems especially in Britain, Finland and Portugal, analysts said.