E-Malt.com News article: 631

Shares in Scottish & Newcastle Plc gained over three percent on Monday as investors saw value following a recent 24 percent slide and were cheered by takeover talk surrounding brewers in Italy and Austria, according to Reuters.

Scottish & Newcastle was at 364 pence by 1345 GMT, turning up after near-continuous losses since early January, after speculation it could be among a pack of firms interested in a stake in Italian beer brewer Peroni.

The rebound in S&N shares came after Britain's biggest brewer last Monday put a question mark over its dividend policy and expansion plans after fresh problems at its UK beer unit Scottish Courage.

"This is a bit of a relief rally, investors are looking for value," said analyst David Liston of UK private client fund manager Gerrard.

Weekend newspaper reports said Belgium's Interbrew INTB.BR was preparing an offer to buy a 40 percent stake in Peroni.

S&N was named as another possible bidder, traders said.

Liston said an Interbrew bid for Peroni might keep the Belgian brewer out of competition with Scottish & Newcastle in any possible move on Austrian brewer BBAG OBRV.VI.

Scottish & Newcastle declined to comment on the takeover speculation.



11 February, 2003