Scottish & Newcastle has welcomed the deadline imposed on Carlsberg and Heineken regarding a potential takeover.

Carlsberg and Heineken have been given a deadline of 21 January 2008 to decide whether to withdraw or make a formal offer to takeover Scottish & Newcastle plc (S&N).

In November the Board of S&N rejected the companies’ offer of 750p per share. No further offer has been made and the deadline, imposed by the Takeover Panel, will have given Carlsberg and Heineken a total of three months with which to make any further moves.

Baltic Beverages Holding, (BBH) the joint venture between S&N and Carlsberg, is at the centre of the takeover bid. S&N has accused Carlsberg of breaches in BBH shareholder agreements – and is now confident that these breaches will give S&N the opportunity to gain Carlsberg’s share in the venture.

In addition to the discussion over BBH, the S&N Board has also expressed its concerns that Heineken ‘is significantly undervaluing the high quality assets it is seeking to acquire’.

Sir Brian Stewart, S&N Chairman, commented on the situation and said: “The Consortium persists in its attempt to secure S&N’s unique portfolio of businesses on the cheap. We have made our position on the Consortium’s proposal very clear and it is now time for Carlsberg and Heineken to put forward an offer which properly values S&N or to move on.

“Our absolute priority is achieving the best possible value for shareholders. We have a strong case for material breach of the BBH shareholders’ agreement and we will vigorously pursue the substantial value creation opportunity which we believe this presents.”