S&N's famous brands include Newcastle Brown Ale

Edinburgh-based Scottish & Newcastle (S&N) said the 720 pence-a-share offer "substantially undervalues the strength and market value of S&N".

It said the "derisory" move was a way to get its assets, such as Foster's and Newcastle Brown Ale, "on the cheap".

On 17 October, Carlsberg and Heineken confirmed they were in talks looking at forming a consortium to acquire S&N.

In a statement released on 25 October, Scottish & Newcastle said: "The board, having consulted its advisers, has no hesitations in rejecting this proposal."

Sir Brian Stewart, the firm's chairman, said: "We will continue to take all actions to maximise shareholder value. I strongly urge shareholders to take no action."

When Carlsberg and Heineken confirmed last week that they were looking at making a move to buy the firm, Scottish & Newcastle said any forthcoming bid would be "unwelcome" and that it was committed to being an independent firm.