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Australian Brewers Elders IXL Bids For British Brewery

October 17, 1988

LONDON (AP) _ Australian brewers Elders IXL Ltd. launched a takeover bid Monday for Scottish and Newcastle PLC, valuing the British brewer at the equivalent of $2.8 billion.

Elders, through its Courage Holdings PLC subsidiary, is offering 400 pence, or $7 a share in cash for the Scottish-based drinks company best known for its Newcastle brown ale.

The Australian company, which makes the popular Fosters brand lager, said it already owns 9.65 percent of Scottish and Newcastle’s share capital.

Following the announcement, Scottish and Newcastle stock shot above the Elders offer price in London to 426 pence from Friday’s closing price of 351 pence.

Elders already owns Courage, one of the best-known names in British beer, which it bought in 1986 for 1.4 billion pounds.

It also owns 13.5 percent of Greene King, another British brewer, and just under 1 percent of the American company Anheuser-Busch, the world’s biggest brewer.

Elders is best known for its beer and lager, but it also has a financial services company and interests in agriculture and mining.

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