Case + Teaching Note

This case describes the attempt by Carlsberg and Heineken to takeover and split the British brewer Scottish & Newcastle (S&N). The case describes the events in chronological order starting with the announcement of the bid. The Board of Directors of S&N firmly rejects the bid, thereby turning the bid hostile. The Board argues that the bid fundamentally undervalues S&N and its growth opportunities, while Carlsberg and Heineken do their best to convince the shareholders of S&N to accept the bid. By resisting the takeover attempt, the Board of S&N forces Carlsberg and Heineken to increase the bid three times, thereby generating more value for the shareholders of S&N.