British brewer Scottish and Newcastle today rejected a takeover bid from Denmark's Carlsberg and Dutch peer Heineken worth £6.8 billion (€9.7 billion).
'Scottish and Newcastle has today received and rejected a highly conditional proposal from Carlsberg and Heineken to make a cash offer for S and N at 720 pence per share,' S and N said in an official statement.
It added: 'The board, having consulted its advisers, has no hesitation in rejecting this proposal as it substantially undervalues the unique strengths and market positions of S and N.'
Scottish and Newcastle's top-selling beverages include Foster's, Kronenbourg 1664, John Smiths and Strongbow.
The proposal was also subject to a number of pre-conditions, including a recommendation by S and N management, and extensive due diligence, the statement added.
'This unsolicited and derisory proposal is an effort to get S and N's unique portfolio of businesses on the cheap,' said S and N chairman Brian Stewart.
'We will continue to take all actions to maximise shareholder value. I strongly urge shareholders to take no action', it said.
News emerged last week that Carlsberg and Heineken were mulling a joint takeover bid for S and N.
Meanwhile yesterday, Carlsberg denied a claim by S&N that it had breached an agreement of their Russian joint venture. The pair have been 50/50 partners in Baltic Beverages Holding since 2002.
Carlsberg wants to win control of BBH and gain S&N interests in France and Greece, while Heineken wants to assume control of businesses in other European markets including Britain.
