Scottish & Newcastle is once again talk of the town after a Financial Times report on Monday said that the brewer of Foster's and Kronenbourg 1664 has been sized up as a potential acquisition target by SABMiller and Diageo, two of the drinks industry's biggest heavyweights.

Industry observers on Monday tried to play down speculation that SABMiller and Diageo had held recent discussions over a possible bid, codenamed Project Spice.