The exclusivity arrangement makes Interbrew, the world's fifth-largest brewer, the leading bidder for Bass, these people say. Others in the running are said to have included Danish brewer Carlsberg SA, South African Breweries PLC and Heineken NV of the Netherlands. The sale is also likely to include Bass's beer unit in the Czech Republic. Bass and Interbrew declined to comment. Previously, Bass said it would continue talks on the possible sale of its brewing operations, the second-largest in the UK after Scottish & Newcastle PLC.

The talks with Bass follow Interbrew's acquisition last month of Whitbread PLC's brewing unit for 400 million pounds, which gave the family-owned Belgian company ownership of the brewery that has been making and marketing its flagship Stella Artois brand in the UK since 1976. People close to Interbrew said buying Bass and taking control of Bass's Carling brand --Britain's best-selling lager - was the "logical next step" for Interbrew, which hasn't had a direct presence in the UK.

Speculation shifted away from Carlsberg last week after the Danish maker of Carlsberg and Tuborg beers announced a deal to buy Norwegian company Orkla ASA's brewing operations in a transaction valued at $1.28 billion (1.34 billion euros), creating a Nordic beer giant. Separately, SAB last week suggested it wouldn't aggressively pursue a bid for Bass, and would instead focus on its large existing operations in Russia, Central Europe and Africa.Consolidation is accelerating in the highly fragmented beer market as national and regional players cross borders to get hold of popular, premium brands, cut costs and create economies of scale. The Wall Street Journal