Doing the gentlemanly thing

SABMiller, the brewer tipped as a possible white-knight bidder for Scottish & Newcastle (S&N), said yesterday that it had looked at its rival but had decided against taking any further action.

In an unusual yet courteous move, SABMiller responded to market rumours that it was poised to make an 850p-a-share bid to counter Carlsberg and Heineken’s recommended 800p-a-share offer for S&N.

Shares in S&N rose 19½ pence to close at 807½ pence on speculation of an offer.

However, SABMiller’s announcement on 21 February 2008 put a damper on any sort of takeover speculation that could have endangered Heineken’s and Carlsberg’s proposed offer.

SABMiller had been understood to be in talks with several investment bankers to arrange financing for a bid. The company said in its statement that, in line with its normal practice of evaluating all strategic opportunities, “it undertook a preliminary evaluation of Scottish & Newcastle but decided not to take further action”.

Analysts say that Anheuser-Busch could make a counterbid, but in recent weeks it has been linked to a merger with InBev.

Suitors of S&N have until an extraordinary general meeting scheduled for 31 March 2008 to make a counterbid for it.