TAKEOVER speculation surrounding brewer Scottish & Newcastle (S&N) has seen the company's share price jump by more than ten per cent in the past fortnight.

The firm, which brews the iconic Newcastle Brown Ale on Tyneside, has been linked to a takeover bid for several weeks, and rival brewer SAB Miller recently surfaced as a possible bidder.

On the back of the ongoing speculation, the group's share price has risen from 531p on March 28 to a high of 613.08p yesterday. Last night, S&N's share price closed at 595p.

The Edinburgh-based group, which employs 160 of its 4,500 UK staff in the North-East and brews Brown Ale at the Federation Brewery, in Dunston, Gateshead, has not commented on the takeover talk.

But recently, SAB Miller has been linked with a £6.5bn bid for S&N, which reported a 13.9 per cent rise in pre-tax profits to £452m last year, and a seven per cent increase in turnover to £4.15bn.

While releasing its record results, S&N - which also brews Foster's, Kronenbourg 1664 and John Smith's - also said jobs could be under threat in its UK and international operation, as it looked to make £50m of cuts over the next three years.

In January, S&N announced it was axing its bottling operation at the Federation Brewery, with the loss of 66 jobs. Twenty-two jobs remain on the line as the brewer reviews its kegging operation at the site.

S&N has seen growth in its worldwide sales, with Newcastle Brown Ale recently named as one of the best-selling beers in the US. The company is also listed on the London and Johannesburg Stock Exchanges.

SAB Miller - which makes the Miller, Peroni and Pilsner brands - also has a strong worldwide presence, with sizeable sales in Asia, Latin America and eastern Europe.