The investment bank, ABN Amro, has downgraded its rating on Scottish & Newcastle (S&N), the UK brewing conglomerate, to "reduce" from "hold". WestLB Panmure bank retained its "outperform" rating on S&N shares and its price target of 405p. The bank has recommended investors “switch out of Danish-based brewer, Carlsberg, and into S&N.” The bank retained its "outperform" rating on S&N shares. Stuart Price, analyst at Panmure, said: "We recommend selling Carlsberg as there's significant headroom for missing the 2003 forecasts."

“S&N had strategic options and was a possible takeover target,” Stuart Price added. "We believe that, within the context of the consolidation of the global brewing industry, S&N looks like a sitting duck and a value investment," he said.

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