City File: Scottish & Newcastle Breweries

SPECULATION is rife that Scottish & Newcastle Breweries is about to buy Coral Racing from Bass. The 770-strong chain, which also includes two greyhound stadia, is probably worth pounds 400m, so it would be a mighty bite for S&N.

Within Bass there is confusion. Coral Racing was put up for sale with no takers last year, and the group has since embarked on a massive upgrading.

What is true is that S&N needs a third leg. Its brewing side is being hit by the free- trade war started by Courage, and there are worries that the holidays group, Center Parcs, will be hit by the recession sweeping Europe. Full-year pre- tax profits, out tomorrow, should show a slight drop to pounds 208m, and the shares look expensive.