The best option for Scottish & Newcastle shareholders is a sale of the business, according to a global brewing report by Citigroup, The Herald reported November 6.

"We expect S&N to pursue a vigorous defence of its shareholders' interests, but in our view maximum value appears to lie with the company being acquired," says the report.

It says investors believe that S&N is using its arbitration proceedings in Stockholm as a tactic, and that "the prospect of lengthy court proceedings and an uncertain outcome may persuade Carlsberg/ Heineken to raise their offer such that S&N management ceases to pursue the case."

Citigroup says Carlsberg is "highly unlikely" to want to relinquish its joint ownership of BBH, the subject of the Stockholm arbitration, while S&N shareholders are likely to be reluctant to allow or fund S&N to buy Carlsberg's stake at a very high price, even if it were possible.

The arbitration might help secure a high price for the Scottish brewer's BBH stake, but to maximise value fully that would need to be combined with a sale of the whole business, says the report.

It also questions whether S&N shareholders "would approve a 'defensive' move such as an acquisition or merger with another party."

Japan boosted its barley and wheat import budget after record grain prices exhausted this year's allocation, causing the first funding shortfall for the purchases in almost three decades, Bloomberg reported November 6.

The government increased the budget by 55 billion yen ($480 million), or 23 percent, to 298 billion yen for the year ending March 31, the Finance Ministry said in a statement. Funding was 203 billion yen last fiscal year.

Japan relies on imports for 71 percent of its food barley. Rising costs are forcing companies such as Kirin Holdings Co., Japan's biggest brewer, and Yamazaki Baking Co. to increase prices.

``We ran out of money for wheat and barley imports by the end of October,'' said Youichirou Tomiyoshi at the Ministry of Agriculture, Forestry and Fisheries Grain Trade Division. ``We may have to add more money by the end of the current fiscal year if costs to import the grains stay high,'' he said by phone today.

Barley for March delivery closed at C$198.10 a ton on the Winnipeg Commodities Exchange, gaining 34 percent this year.

Japan's food barley imports are forecast to fall to 270,000 tons from 380,000 tons, according to the ministry. Australia is the largest ...More Info

ABB Grain Ltd announced record harvest pool first advances of $325/tonne for malting barley and $262/tonne for feed barley, following the opening of its 2007/2008 harvest barley pools, according to ABB’s press release, November 7.

ABB Grain’s managing director, Michael Iwaniw, said the figures represented “unprecedented first advances” and reflected continued, exceptionally high international barley prices.

This week ABB opened its 2007/2008 harvest barley pools quoting gross pool returns of $375-$385/tonne for malting 1 and $300-$310/tonne for feed 1 grade.

Mr Iwaniw said the pool advances took into account current market conditions including international barley prices, the value of the Aussie dollar and ship chartering rates.

“Growers have witnessed record prices for barley and this has been driven by a combination of reduced supply in the international and domestic markets,” he said. “ABB has been able to capture these prices with some sales to regular customers which are reflected in the price estimates.

“As always we will be endeavouring to maximise pool returns and we believe growers will find these pool estimates for the 2007/2008 crop and the first advances, very attractive.

“ABB, as usual, will continue its renowned reliability of payment to growers. Once growers have delivered barley to our pools, the average payment time ...More Info