Lion Nathan quashes takeover rumours

Lion Nathan today moved to quash speculation it is ripe for a takeover by Filipino brewer San Miguel.

Shares in the dual-listed company have rocketed on both sides of the Tasman in recent days on rumours San Miguel is about to launch a bid.

In New Zealand this morning they touched $9 -- a 13 month high, while in Australia yesterday they rose to a 5-1/2 year high of A$8.38 ($9.17).

The Sydney-based brewer, whose local brands include Speights, Lion Red, Macs and Steinlager, is 47-per cent owned by Japan's Kirin Brewery, which also has a 20 per cent stake in San Miguel.

Market commentators are speculating that San Miguel is set to bid A$8.50 ($9.30) a share for the company, valuing the company at around $5 billion.

Lion Nathan today played down those claims.

"The company is aware of media speculation emanating from unknown sources. . . that San Miguel Corp maybe considering a takeover offer for the company," the brewer said.

"The company knows of no such offer, it has not been approached and it has not engaged in any discussions consistent with this speculation."

Lion Nathan shares eased off the gas pedal to trade up 10c at $8.70 on the comments.

Brian Blake, managing director of Lion's local rival DB Breweries, said his firm normally knew of rumours in the market regarding industry developments, but this one had taken him by surprise.

"Normally we would get a whisper but we haven't heard anything. This one has come right out of the blue as far as we are concerned," he told NZPA.

Mr Blake said there had been a lot of consolidation of the international brewing industry over the last five years.

"The brewing industry seems to be one of the last in the world that has become global and there has been a hive of activity in the last five years, so nothing really surprises."

Asked if a marriage of Lion Nathan, San Miguel, and Australian juice company Berri would work, Mr Blake said modern business was about looking for efficiencies and synergies.

He said the fact that DB was owned by Asia Pacific Breweries had not diminished the public's perception of DB in New Zealand while financial performance had improved. APB in turn is controlled by Dutch giant Heineken.

San Miguel is on the acquisition trail. In April it won a bidding war with Fonterra for National Foods, paying A$1.9 billion for the Australian dairy products group.

This month, San Miguel said it might buy the 49 per cent of Australian juice-maker Berri it already did not own.

San Miguel bought Australian brewer J. Boag for A$92 million in 2000.

- NZPA