Britain's biggest brewer Scottish & Newcastle (S&N) today rejected a raised bid from Carlsberg and Heineken at 780 pence a share, or £10.1493 billion sterling (€13.5bn), and said it would only talk if the offer was at least 800p, heightening the prospect of the bid failing.
Carlsberg urged S&N shareholders to act to secure the raised offer and said its consortium with Heineken will not go hostile in its approach for the maker of Foster's and Kronenbourg. It said the bid will lapse if there is no recommendation.
Shares in S&N only edged up 1.1 per cent to 727 by 11.25am on worries the Carlsberg-led consortium may not get funding for a higher bid and it may abandon its attempt.
Carlsberg shares were suspended early and then dipped 3.1 per cent to 597 crowns when trading resumed, while Heineken was off 3.9 per cent at €42.01.
The Edinburgh-based brewer said the new 780p bid "failed to be competitive" after the consortium of Carlsberg and Heineken increased the 750p cash offer, worth £7.3 billion, which it made last November.
S&N added the 780p bid had not been described as a final offer, and it was only happy to talk to two of its most powerful trading rivals with a price of at least 800p per share, or £7.8 billion, on the negotiating table.
It added the bid still undervalues the 50 percent share it owns in Russia-based fast-growing brewing joint venture Baltic Beverages Holding (BBH) which it runs with Carlsberg at some £3.5 billion, and said the Danish brewer should agree to release full details on the venture to allow shareholders to assess its true worth.
S&N is trying to turn the tables and gain control of Baltika brewer BBH from Carlsberg. The British brewer has lodged a formal legal claim that the consortium's bid breaches its BBH agreement with the Copenhagen-based brewer.