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Carlsberg and Heineken confirmed today that they are in talks over a possible bid for rival brewer Scottish & Newcastle (S&N).

The Edinburgh-based brewer, whose brands include Fosters, Kronenbourg 1664 and John Smith's, has been the subject of widespread takeover speculation in recent months.

In a joint statement today Carlsberg and Heineken revealed that they were considering the formation of a consortium to make an offer for the firm.

"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 & Newcastle," the companies said.

But the statement added: "To date no formal approach has been made to Scottish & Newcastle and there can be no certainty that an offer for Scottish & Newcastle will ultimately be forthcoming."

Carlsberg and Heineken said that if they were to make an offer for S&N it would most likely be a cash bid.

Under plans currently being considered by the brewing giants Denmark's Carlsberg would acquire S&N's interest in east European brewer Baltic Beverages Holding (BBH), along with the company's operations in France and Greece.

Dutch firm Heineken would assume control of S&N's businesses in the UK and other European markets.

Heineken and Carlsberg have said that they will make a further announcement on the matter "in due course".

Both companies have previously been tipped as individual bidders for S&N, which is also said to be within the sights of rival drink firms Diageo and SABMiller.

Confirmation that Heineken and Carlsberg are considering making a joint offer for S&N saw the takeover target's shares lift in trading today. By noon they were up 102p, climbing by 16 per cent to 738.5p.