S&N accepts £7.8bn takeover talks

Scottish & Newcastle (S&N) has agreed to enter takeover negotiations after Carlsberg and Heineken upped its offer to 800p per share.

The British brewer rejected a bid of 780p last week and said that it would refuse to enter talks until it was offered 800p, or £7.8 billion.

"Scottish & Newcastle plc and Carlsberg and Heineken confirm that they have entered into discussions in relation to a possible recommended offer for S&N at 800 pence per share," the brief announcement said.

News of the acceptance put the maker of Foster's and Strongbow cider's share price up by more than five per cent yesterday afternoon.

Dutch brewer Heineken and Danish counterpart Carlsberg have until January 24th to strike a deal with S&N after they were granted a deadline extension by Britain's Takeover Panel.

The Edinburgh-based company added: "Shareholders should be aware that there can be no certainty that a formal offer will be made".

Shares in the Newcastle Brown brewer are flat at 765p after a brief spike in the morning's trading.