S&N rejects Carlsberg bid
Britain's largest brewer, Scottish & Newcastle, has rejected a hostile takeover bid by Danish rival Carlsberg, saying it had plans to expand its business in Asia.
S&N, which makes Kronenbourg, John Smith's and Strongbow, said it would not recommend to shareholders anything less than a 10 billion cash offer ot a merger in which its shares continued to trade in London.
Carlsberg chairman Povl Krogsgaard-Larsen said his company had the finances to buy out S&N from its lucrative eastern European business Baltic Beverage Holding for between 3 billion and 4 billion.
Owning 100% of BBH would allow Carlsberg to increase the marketing of its Carlsberg and Tuborg lagers in Russia.
An S&N spokesman emphasised the company's growth prospects in India and China and said management was "happy with the status quo", in jointly owning BBH with Carlsberg.
S&N shares rose 1.2% in morning trading to 619.5p.
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