Carlsberg: S&N case has no merit

Carlsberg claims S&N's argument over Baltic Beverage Holdings is "frivolous"

Carlsberg has hit back at Scottish & Newcastle (S&N) claiming its case to wrest control of Baltic Beverage Holdings (BBH) is "frivolous".

The Danish brewer slammed S&N's case as having "absolutely no merit" after details of its argument were submitted to the arbitration tribunal.

Carlsberg said it would ask the tribunal to dismiss the case for being "totally unfounded".

S&N claims that Carlsberg breached its joint agreement in BBH after it launched a joint bid for the British brewer with Heineken.

S&N has entered its case for arbitration and hopes to gain full control of BBH. It estimates BBH could provide synergies of £100m for the company.

Jorgen Buhl Rasmussen, President and of Carlsberg, said:"We've seen nothing new of substance today - S&N continues to progress with a case that has absolutely no merit instead of focusing on the certainty of the cash value of the Consortium's proposal, which is the only deliverable means of maximising value for S&N's shareholders today."

The arbitration process could be over by 3 July and the Consortium have been given until 21 January to tie up a deal for S&N.