Scottish & Newcastle shares rise

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Manufacturing News, Source : TheManufacturer.com
Published : 27 Apr 2007 10:00
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Shares in Scottish & Newcastle, the maker of Foster's, Kronenbourg and Baltika beers, have risen following rumours of a potential takeover bid.

The brewer’s shares rose 2.4 per cent in London, outperforming the top London FTSE 100 index, which slipped 0.4 per cent, or 26.50 points, to 6,442.90.

The gains followed news that S&N's Danish competitor, Carlsberg, had applied for permission to acquire more assets and that S&N was a possible target.

S&N shares have shown sharp gains from last week, rising from 565.5 pence to Friday's 599.5 pence. The shares hit a high of 615 pence earlier in the session, a level not reached since September 2002.

In a trading statement, S&N, Britain’s biggest brewer announced that an improvement in sales in France and Russia had offset a slow start to 2007 in the UK.

The group expects to meet expectations for the year, although it is still warning of the effect of higher interest rates and the rising cost of investment in Russia and eastern Europe.

"Trading remains robust in our Western European markets which are highly cash generative ... and our developing markets in Asia continue to show real potential," the group said.