Brewer, Scottish & Newcastle (S&N) has made a recommended offer for cider-maker H.P. Bulmer.

The ordinary offer will be 310p for each Bulmers Ordinary Share and offers will also be made for the company's preference shares.

In total, the offers value Bulmers at about £278m including net debt of £91m as at the end of March.

A full share exchange alternative will be offered to Bulmers shareholders, currently equivalent to 325p per Bulmers ordinary share. A full loan note alternative will also be available, equivalent to 310p per Bulmers ordinary share.

S&N currently holds approximately 25.5 per cent of Bulmers' issued ordinary share capital.

Chair of S&N, Sir Brian Stewart said: Bulmers has a highly regarded expertise in cider production and by joining its strengths with Scottish & Newcastle's leadership in UK beer we shall create a powerful combination with opportunities to improve the performance of Bulmers' key brands as well as delivering significant cost savings.

Bulmers chair, Will Samuel said: The Board believes that the full potential of our brands can only be realised by being part of a large international drinks group. Scottish & Newcastle is well positioned to realise the full potential of Bulmers' brands. Details: www.scottish-newcastle.com / www.bulmer.co.uk