Shares digital

Scottish & Newcastle (SCTN) 740.5p

The Heineken and Carlsberg consortium said it will not launch a hostile bid on Scottish & Newcastle after the UK brewer rejected its 780p-a-share offer and held out for 800p. (Read the full story:

www.sharesmagazine.com/node/2882)

Shares says: It will probably get 800p but that is top whack because the UK market is in decline and the French market is difficult. Were the bid to fail, the shares would lose at least a third of their value. Cautious investors might consider top-slicing their holdings. HOLD

The Times says: Central to the 20p value gap between the two sides is the value of Baltic Beverages Holdings , the Russian and Baltic brewer that is jointly controlled by S&N and Carlsberg.

FT says: Some investors were unhappy with S&N’s decision and planned to raise their concerns in the coming days. One top-ten shareholder voiced concerns that S&N’s intransigence would prompt Carlsberg to walk away ‘and then S&N shares will collapse’.

The City says: We do not believe the S&N board is deliberately acting against the interests of its own shareholders but we do believe that it is having this effect by taking an excessively and dangerously hard line with the consortium.