Scottish and Newcastle moves to block takeover

BREWER Scottish & Newcastle is reportedly plotting to sell the holding company behind one of its prized assets to block a potential hostile takeover by Carlsberg and Heineken.

The Foster’s and Kronenbourg 1664 brewer is believed to be planning to offload Finnish company Hartwall, which holds S&N’s 50% stake in Russian beer business Baltic Beverages Holding (BBH).

BBH is S&N’s joint venture with suitor Carlsberg and is seen as being a key attraction to the potential bidders.

Reports of the defensive strike follow last week’s surprise announcement by Denmark’s Carlsberg and Dutch group Heineken that they are in talks over launching a possible bid for S&N.

The plans would see Edinburgh- based S&N broken up, with Carlsberg hoping to buy out the remaining stake in BBH and take on its businesses in France and Greece.

Meanwhile, Heineken is looking to gain S&N’s British business and operations elsewhere in Europe. But S&N was said to be furious at the proposals, last week describing them as unsolicited and unwelcome.

The group is thought to be hoping a sale of its stake in BBH — thought to be worth around £2.5 billion (€2.8bn) — would thwart the approach.

It is also lining up “white knights” to help it fend off Carlsberg and Heineken, according to reports.