Scottish & Newcastle has reported trading in line with expectations and reiterates that a 780p-a-share bid for the company from Carlsberg and Heineken “undervalues” it.

Despite difficult UK trading conditions, total beer and cider volumes fell by 2% in the fourth quarter and sales were level year-on-year, S&N said in a trading update. Major brands' volume and sales were up 1% and 3% respectively.

Carlsberg and Heineken's 780p-a-share bid ignores synergies of £100m a year available from controlling its Russian venture Baltic Beverages Holdings, fails to recognise the proper value of BBH and ignores the real value of S&N's western European and US assets, it added.

Meanwhile, S&N has reportedly contacted private equity firms Texas Pacific Group and Blackstone, as well as rival brewer Anheuser-Busch, to take a stake in BBH.