10 November 2002 09:50
Scottish & Newcastle;Sharewatch
IT was a bad week for the brewer, which saw its shares fall 28p to 472p, taking them below 500p for the first time in
more than a year. It is beginning to look as if the group's Pounds 1.2billion acquisition of the Finnish group
Hartwall is going flat even before its completion.
Hartwall on Thursday announced "signs of slackening" in the Russian beer market, where it has a 50% stake
in the country's biggest brewer, as well as soft third-quarter figures. That prompted CSFB, the stockbroker, to cut
its share price target for S&N from 520p to 480p and adjust its estimate for volume growth in the Russian beer
market from 10% to 5% next year. This contrasts with the confident prediction by Sir Brian Stewart, the S&N
chairman, of double-digit volume growth as Russian drinkers switch away from hard liquor.
It may be enough to revive fears over the safety of S&N's dividend. The stock is yielding more than 6%,
shareholders want to see signs of greater cash generation and there could be more acquisitions in the pipeline. Avoid
until the picture is clearer.
[UKIR [UK & Ireland Intelligence Wire]] |
RUSSIA IN FACTS
