Scottish & Newcastle (S&N) has this morning said it expects to see its full year results in line with expectations and reiterated its stance that Carlsberg and Heineken’s 780p joint takeover bid undervalues the company.
The UK brewers said that despite widely reported difficult trading conditions in the UK during the fourth quarter, total beer and cider volume was down only 2%, while sales were level year-on-year.
It said that major brands’ volume and sale were up 1% and 3% respectively.
The company again called for greater transparency regarding Baltic Beverages Holding (BBH), its Russian joint venture with Carlsberg.
It said that the publication of extracts from BBH’s agreed three-year business plan was essential for shareholders to see the true value of S&N.
The UK brewer said it had sent Carlsberg the draft of an announcement setting out the information about the prospects of the joint venture it wishes to publish.
The ownership of BBH has become a significant part in S&N’s defence against the joint takeover bid.
Last week S&N said it believed it could achieve £100m of cost and revenue synergies through gaining outright control of BBH.
Yesterday it emerged that Anheuser-Busch had approached S&N about a potential £4.6bn bid to take full control of BBH.
Private equity groups Blackstone and Texas Pacific have also held talks with S&N and hinted they are prepared to invest as much as £2bn.
John Dunsmore, chief executive of S&N, said: “We are totally committed to realising full value for our shareholders, however that may manifest itself. We have clearly stated the level at which we would engage with the consortium and have again called for greater transparency on BBH.
“We would urge shareholders to continue to press the consortium to co-operate in releasing the BBH information.”
S&N statement came after Carlsberg and Heineken made a final appeal to S&N invetsors to put pressure on the company to accept their improved offer as it was putting “billions of shareholder value at risk”.
A spokesman for the Danish brewer and Heineken said: “The choice for shareholders is stark: certain value today or a long period of uncertainty. The board’s unwillingness to engage puts billions of shareholder value at risk.”
However, it is thought that S&N could return several billions of pounds to its shareholders through asset disposals if it continues to rebuff its two rivals, including the sale of Brasseries Kronenbourg, its French business.
