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United Kingdom: Scottish brewery, Belhaven, dismissed on April 13 renewed speculation that it is poised to be taken over by Greene King, the Suffolk brewer and pub operator, according to Herald & Times.

Sources close to the Scottish firm said a deal is likely to be completed in June, but this was rubbished by Stuart Ross, chief executive of Belhaven."Its news to me. I haven't spoken to anyone at Greene King for months," he said. "Belhaven is forging ahead to build a business of strategic importance to Scotland. They would have to talk to the institutional investors not me. There's no truth in that one."

Ross speculated that market rumours have resurfaced following Wolverhampton & Dudley Breweries' £46m bid for Jennings Brothers, the Cumbrian brewer and pub owner. Wolves, which brews Marston's Pedigree Ale, said on Tuesday it was considering a 430p-a-share offer for Jennings. Wolverhampton has been slugging it out with Greene King for pole position among the regional brewers, and analysts have pointed to Belhaven as another likely short-term target. Belhaven's shares have climbed steadily recently. However, they fell 1p yesterday to 487.5p.

In February, Greene King securitised part of its business, giving it the financial flexibility to take advantage of acquisition opportunities in the sector. However, the Scottish smoking ban is one potential pitfall.

Commenting on the likelihood of Greene King pitching for Belhaven, Alan Millar, an analyst at Arbuthnot Securities, said: "It's not an entirely stupid idea, but I would be surprised if it's imminent. Belhaven would not provide the same synergies as some of (Greene King's) bolt-ons. It would have to be run almost as an autonomous Scottish division. But never say never."

Greene King declined to comment.


17 April, 2005