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Private equity firms move in on Scottish & Newcastle pub chain

Private equity buyers are queuing up to bid for the pub and restaurant division of Scottish & Newcastle. The chain is made up of 1,450 pubs, restaurants and hotels and is valued in the region of £2bn.

The sale is thought to have been inspired by the amount of private equity interest generated by pub and hotel giant Six Continents. Private equity house including Nomura, BC Partners, CVC Capital, Mitchells & Butlers and Robert Breare's Noble House, are all tipped as potential bidders.

Scottish & Newcastle is seeking to bolster its balance sheet and concentrate on its core brewing business. The firm yesterday agreed the take-over of UK cider company HP Bulmer for £278m and has also been linked with a possible move for Carlsberg.

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