Scottish & Newcastle (S&N) is hoping to secure a decision on its Russian joint venture agreement with Carlsberg by June next year after the UK brewer set out plans to submit details of the dispute to a Swedish arbitration tribunal.

S&N confirmed today that a chairman has been appointed to lead the Arbitral Tribunal.

The Stockholm Chamber of Commerce's Arbitration Institute will rule on S&N's claim that Carlsberg has breached the shareholders' agreement relating to the 50-50 joint venture, Baltic Beverages Holding.

The disagreement arose after Carlsberg launched a joint bid with Heineken to acquire S&N, which has forcefully rejected the approach.

S&N is using the arbitration process to attempt to seize control of the joint venture.

Since their initial approach, Heineken and Carlsberg have raised their initial indicative bid from 720p a share to 750p, valuing the John Smith’s and Kronenbourg 1664 brewer at £7.3 billion, or about £9.7 billion including debt and pension liabilities.

S&N claims Carlsberg has breached the terms of their BBH joint venture by “misusing confidential information for its offer” and suppressing information on BBH that could help its shareholders to assess its value.

S&N has said that it could bring in a minority financial partner to help it fund a deal to take control of BBH.

John Dunsmore, chief executive of Scottish & Newcastle, said last month: "We are confident of our legal position. We have a robust case for taking control of BBH.” Carlsberg has dismissed the arbitration claim as without merit.

Dutch newspapers reported today that Mr Dunsmore said that there was a “lack of confidence” which would make it impossible to continue co-operating with Carlsberg.

Carlsberg has argued it could not be in breach of the shareholders’ agreement because its stake in BBH was held through Pripps Ringnes, its Swedish subsidiary.

S&N believes that Carlsberg’s joint bid with Heineken, was a clear breach of the joint venture as it was an attempt to circumvent the so-called shotgun arrangement, under which one party can offer to buy out the other.

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