Shares in Scottish & Newcastle S&N rocketed today as European brewing giants Carlsberg and Heineken confirmed they were in talks regarding the formation of a consortium to launch a bid for the UK's largest brewer.
In a statement the pair said: "Carlsberg and Heineken note the recent share price movement of Scottish & Newcastle. 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."
An offer, if made, is likely to be in cash.
The companies said that it was "currently intended that Carlsberg will ultimately acquire Scottish & Newcastle's interest in Baltic Beverage Holdings, France and Greece, and that Heineken will ultimately assume control of Scottish & Newcastle's business in the UK and other European markets".
The statement added that "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".
A further announcement will be made in due course.
Shares in S&N were climbing rapidly as the market digested the implications of a possible bid, with the price of 750p, up 113.5p, 18 per cent higher than yesterday's close at the time of writing.