Carlsberg and Heineken have teamed up to prepare a takeover bid for the UK’s biggest brewer, Scottish & Newcastle (S&N). The pair are launching a formal bid which should be delivered within days, offering between £6.8bn and £7.1bn excluding debt. S&N is said to be “furious” over the sudden move by Carlsberg, which is its joint venture partner in Russia. It is said to be looking for a strategic partner to help fund a £5bn pre-emptive strike for BBH, the Russian brewer it co-owns with Carlsberg. S&N is considering a sale of Hartwall, the Finnish company which holds S&N’s £2.5bn stake in BBH. However, sources close to S&N indicate that the company may consider an offer of about 900p a share, well exceeding Carlsberg and Heineken’s initial offer. Admiral Taverns is also thought to be keen on buying S&N assets such as its managed pub estate, Spanish drinks giant Mahou San Miguel would be interested in the European assets and SABMiller may emerge as a rival bidder for the whole company. United Breweries owner Vijay Mallya, S&N’s Indian partner, might also be interested in bidding for S&N’s 37% stake in his business. S&N shares rose 19% last week, closing on Friday at 767p. The Sunday Telegraph 21/10/07 page B5 (Business) The Sunday Times 21/10/07 page 1, page 4 (Agenda, Business), page 5 (Business) The Independent On Sunday 21/10/07 page 2 (Business) The Mail On Sunday 21/10/07 page 1-2 (Financial) Sunday Express 21/10/07 page 1, page 29 (Financial)