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JP Morgan expects private equity bid for S&N
The city has been busy with chatter this week as analysts discuss the possibility of a takeover of Scottish & Newcastle. The company’s shares rocketed last week amid rumours that Heineken was lining up a takeover bid. However JP Morgan Chase & Co has predicted that a private equity bid is more likely.
In a research note published on Sunday, senior analyst Simon Hales stated: “private equity is most likely to initiate a bid”. It has been suggested that a rival brewer would be unable to significantly reduce costs.
The Edinburgh-based company has been valued at around £6.6 billion, and its share price has shot up 11% in the last week to over 600 pence. Other analysts have speculated that the company may merge with Carlsberg – with whom it already operates a strong joint venture in Russia – in order to stave off a takeover bid.
© db Ben Grant 04/04/07