E-Malt.com News article: 1580

Canada’s beer maker, Molson Inc., based in Montreal, denied on September 17 media report according to which it was "open to bids", adding that "under no circumstances" was it considering selling the company. Molson said the article published in the Globe and Mail after a presentation to investors by Molson President and Chief Executive Daniel O'Neill "misinterpreted the intent of the communication and as a result is misleading to shareholders."

"Mr. O'Neill confirmed today that under no circumstances is Molson considering selling the company," the brewer said in a statement. The firm said it will instead focus on its core markets of Canada, the United States and Brazil, which could double its operating profit. "This is the key focus of Molson over the next five years," the company said.

The speculations leaded to the fact that Molson’s shares fell 15 Canadian cents to C$34.50 on September 17 morning on the Toronto Stock Exchange as some 520,000 shares changed hands.

Canada's largest brewer said on Tuesday it wanted to make at least C$1 billion ($730 million) in profit before interest and taxes by fiscal 2009 but did not plan to merge or make any acquisitions in the short term to help it meet that target. In fiscal 2003, which ended on March 31, the company's operating profit reached C$516 million.

O'Neill told a webcast briefing for investors and shareholders that consolidation in the beer business does not necessarily generate value for shareholders.

Molson, which acquired Brazilian brewer Kaiser last year, said the advantages of delaying further international expansion far outweighed the risks of not moving aggressively in its key markets. Molson said gains in market share would be its top priority in Canada, where it holds a 45 % market share and competes head to head with Labatt, owned by Belgium's Interbrew.


19 September, 2003