Denmark: Danish shares close lower, led down by Carlsberg

Share prices closed lower, led down by Carlsberg following a downgrade at Kaupthing on the announcement that the group is in discussions with Heineken over a joint takeover of Scottish & Newcastle, dealers said, according to Newstex, October 18.

Carlsberg B closed 58 dkr lower at 712 following a lack of further information about yesterday's announcement it is in discussions with Heineken over a joint takeover of Scottish & Newcastle.

Analyst Bjorn Schwarz at Sydbank said Carlsberg was down as the group is expected to issue new shares, at a discount to today's share price, to finance the acquisition.

Carlsberg was downgraded to 'neutral' from 'buy' at Kaupthing with a price target of 825 dkr, on valuation grounds and as the brokerage sees 'plenty of scope for disappointment' in a potential takeover of Scottish & Newcastle.

The Danish brewer's shares have recently performed strongly, and as they move closer to the 825 dkr price target, upside potential is reduced, Kaupthing said in a note to investors.

19 October, 2007