UK pub bosses questioned the rationale and the prospects for success of Carlsberg/Heineken's approach for Scottish & Newcastle (S&N).
The Danish/Dutch-led consortium needed to raise its game if its attempt to acquire S&N was to prove successful, Punch Taverns' chief executive Giles Thorley said today.
Asked about the consortium's prospects for taking over S&N, the boss of the UK's largest pub company said: "Speaking not for Punch Taverns but in a personal capacity, I'd say they hadn't done a very good job so far.
"I don't think [Carlsberg/Heineken's] approach would succeed at the current price [of 720p], although the circumstances could obviously change if they came in with a higher offer. Currently their prospects of success are zero." he said.
Although Thorley said he believed a takeover of S&N would not necessarily be a bad thing and could help boost Heineken's standing in the UK, he warned that the removal of the Edinburgh-headquartered brewer from the UK could see the domestic beer market becoming an afterthought for a global concern.
"S&N put a lot of effort into UK pubs and more into development of the industry than, say, an offshoot of an international brewing business would." The brewer looked at the market "holistically", he said.
Thorley said that Punch had recently renegotiated its supply agreements and its deal with S&N was set to last 10 years. The pubco had the right to terminate the agreement, he added, while the brewer did not.
His comments came as speculation mounted that the Carlsberg/Heineken consortium was about to raise its indicative offer for the UK brewer.
Thorley said he believed that S&N was currently fighting for shareholder value and that the real battle for its independence had yet to commence.
"At the end of the day if S&N's shareholders are convinced it is the right thing to do then the deal will go ahead," he added.
Charles Wells' boss Paul Wells echoed Thorley's concerns: "Global lager companies know all about single brand strategies but if S&N goes we'll lose that side of a multi-brand offer.
"The choice of beers in a British pub is a complex tapestry of relationships and we carve this up at our peril. S&N has more of a passion for the pub trade than I've seen in other companies."
S&N also had an "enlightened view" when it came to brands, Wells said, pointing to his company's deal with the brewer to take on the Courage portfolio earlier this year. "I'm not sure that would have happened if I'd have to baorded a plane to meet someone on another continent."
Jonathan Neame, chief executive of Kent brewer Shepherd Neame, said that while Carlsberg and Heineken were "admirable" companies it would be "a shame" if the UK lost its last indigneous national brewer as a result of their approach for S&N being successful.