Allied repositions in Montana dispute

By Phil Boeyen, ShareChat Business News Editor

Wednesday 2nd May 2001

The jostling for control of winemaker Montana (NZSE: MON) is continuing with Allied Domecq filing a notice of restricted transfer which could see it in the market as early as next week.

The notice follows an earlier one on April 20 that would have allowed the global liquor company to begin buying shares from May 14. The new notice allows it to go on market as of Monday, May 7.

Allied's offer is between a range of $4.16 and $4.64. In February the company had offered to buy shares at $4.40, a price which had the support of Montana directors.

However Lion Nathan managed to snatch majority control of the winemaker with its unconditional offer of $4.65.

Whether the company or its broker played by the rules will be heard this weekend, when a standing committee appointed by the Market Surveillance Panel will hear the case against Lion Nathan and Credit Suisse First Boston.

At issue is whether transactions for Montana shares occurred before Lion was entitled to purchase them under listing rules.

The standing committee has noted previously that it is desirable for a decision on the matter to be made as quickly as possible, although a ruling is unlikely to be made for at least several days after the hearing.

If the committee finds against Lion Nathan the company may be forced to sell its holding. Alternately the company could appeal the decision, taking the legal battle further.

In the meantime the brewer has been keeping its options open.

On April 24 Lion filed a restricted transfer notice for all of Montana at a price between $3.95 and $4.70. Lion said the reason for the notice was to provide it with flexibility in light of the new Allied notice.

An appraisal report on the Lion offer is due to be distributed to Montana shareholders sometime next week.

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