Battle for Scottish & Newcastle takes new twist

The battle for Scottish & Newcastle (S&N) took a new twist last night as the Carlsberg/Heineken-led consortium publicly appealed directly to S&N shareholders to consider its improved 750p-a-share offer for the UK brewer.

Noting S&N's rejection of the revised offer, Heineken chief executive/chairman Jean-Francois van Boxmeer went on the offensive for the first time - and over the heads of S&N executives - to S&N shareholders: "We have tabled a full and fair offer with only limited, customary conditions.

"I strongly urge S&N shareholders to ensure the S&N board takes the necessary steps to allow us to announce a recommended offer as soon as possible," he said.

Echoing his colleague's comments, Carlsberg chief executive Jorgen Buhl Rasmussen added: "We find the board's intransigence and ill-informed rejection very disappointing.

"The time has come for S&N shareholders to direct their board to engage with us."

The consortium was "very disappointed by the tone and speed of S&N's response," it said in a statement.

"We believe the characterisation by S&N of our increased proposal as 'highly conditional' stems from a misunderstanding, in particular with regard to their reference to our 'full due diligence' requirements.

"Our diligence is limited and confirmatory in nature and is focused upon the Western European assets and our key separation assumptions. We want to meet with the board and clarify our limited requirements for the benefit of S&N shareholders.

"The consortium is convinced that the increased proposal delivers a full and fair value in cash and is in the best interests of S&N shareholders.

"Despite our best efforts, S&N has again refused to engage in discussions to convert the increased proposal into a firm recommended offer.

"S&N shareholders are urged to direct the board of S&N to enter into discussions with the consortium, to facilitate due diligence access and to enable a firm cash offer to be launched as soon as practicable."