Pressure mounts over S&N deal


Pressure mounts over S&N deal
Danish brewer Carlsberg has confirmed that it has secured the funding and financing to buy rival UK brewer Scottish & Newcastle (S&N).

Carlsberg and Heineken, which have formed a takeover consortium to buy S&N, face a Takeover Panel deadline today to strike a formal bid.

Negotiations continued late last night as pressure for an offer mounts with the deadline approaching.

"The financing is in place," a Carlsberg spokesman said, according to the Times. "We will keep our investment grade and Carlsberg Foundation will keep its minimum stake of 25 per cent… All options are open until midday."

According to the Daily Borsen newspaper, Carlsberg has been able to secure 31 billion Danish Kronors (£3.1 billion) from banks in order to make the offer.

The consortium showed its interest in buying S&N last October, initiating a series of bid offers starting from 720p per share. S&N rejected previous offers, saying that they undervalued the firm.

However, last week the maker of Strongbow cider and Newcastle Brown finally agreed to enter takeover talks after it was offered 800p per share of the company, or roughly £7.8 billion.

Carlsberg still faces due diligence issues over how to split S&N's profits with Heineken. The issue is not considered a deal-breaker, however, it may require the bidding consortium to request another extension from the Takeover Panel.

"Due diligence is still going on, so let's not jump to any conclusions," the Carlsberg spokesman reportedly added.

S&N shares have fallen 42.5p, or 5.78 per cent, to 692.5p in the morning's trading.

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
HR / Recruitment
Health / Beauty
Hotel / Catering / Restaurants
IT / Internet
Insurance / Pensions
International / Overseas
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Transport / Logistics
Travel / Tourism / Leisure