Scottish and Newcastle has unveiled plans to auction off its entire pub estate to fund its brewing ambitions.

The Edinburgh-based group has also announced a �165m takeover bid for troubled cider maker HP Bulmer.

The sale of S&N's 1,400 managed pubs, hotels and restaurants is expected to raise about �2bn.

The company wants to enter the big league of world brewing and already owns three of Europe's top 10 beers in Kronenbourg, Foster's and Baltika.

Share surge

Its 310p a share bid for Hereford based Bulmer, makers of Strongbow, has been recommended by the cider maker's board.

S&N will also take on �91m in debt. It is understood to have outbid Interbrew for the Bulmer business.

The brewer's shares surged nearly 10% at 380p on the news.

S&N had originally intended only to sell around 700 pubs to raise about �700m.

But the level of interest in its pubs had prompted its decision to sell the whole estate.

It also announced it was in advanced talks to acquire full control of Portugal's Central de Cervejas brewing group in which it currently owns 49%, and also to buy the associated business of Sociedade da Agua de Luso.

The group said trading for the year to April 2003 was in line with its expectations ahead of the announcement of its annual financial results due in early July.