In a research note published on December 01, the analysts mention that according to a German magazine, Focus, Carlsberg and Bitburger have jointly made a bid for Holsten, Germany’s second largest brewer. The companies have offered €550 million (US$660 million) to Christian Eissenbeiss, Holsten's principal shareholder, the analysts report. According to the magazine, this may not be enough for a company €300 million in debt. The analysts express their concern, however, regarding Carlsberg's return to the fragmented German markets with this acquisition. The acquisition may also affect Carlsberg's focus on the growing Eastern European and Asian markets, ING Financial Markets believes.

“Germany's largest brewer Holsten gained 5.4% following reports that Bitburger and Carlsberg want to buy the company for 550 million euros, about a 10% premium over current market value,” Dow Jones Newswires wrote on December 01.

"We expected Holsten would be sold at a price between 36 and 40 euros, and this reported bid comes out towards the top end of this range. It's also certainly not a surprise that Carlsberg's interested," said a CSFB analyst.

Holsten has declined to comment. Carlsberg has declined to comment too.

03 December, 2003