Britvic investor Aviva has told Carlsberg to raise its offer for the soft drinks manufacturer if it wishes to have a successful takeover deal.
The insurance business, which is also a top ten shareholder in Britvic, said that Carlsberg has “scope to be more generous” with its bid as it was currently too low, This is Money reported.
Aviva UK equities fund manager Kunal Kothari told the publication that the Danish brewer could benefit from acquiring Britvic, but this could only be achieved at an “appropriate” price.
“Whether we support the deal or not depends on whether the offer price values the business appropriately,” said Kothari.
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He added that the current deal did not consider how Britvic’s finances are anticipated to grow over the next few years.
The comments come after the company revealed that it had rejected two bids from Carlsberg last week, with the latter being a proposal of £3.1bn, or £12.50 per share.
The UK-based drinks manufacturer – which owns popular brands such as 7up, Gatorade, Robinsons, Tango, Fruit Shoot and Whites Lemonade, as well as bottling for PepsiCo in the UK – declined both offers from the beer giant, claiming it was “significantly” undervaluing its portfolio.
However it is understood Carlsberg is to be putting together a third bid for Britvic, as it was confirmed that PepsiCo has agreed to waive the change of control clause in its bottling arrangement if the acquisition is successful.
Carlsberg has until 5pm on 19 July to announce its firm intention to make an offer.
