Lion continues building wine stake

By Phil Boeyen, ShareChat Business News Editor

Thursday 17th May 2001

Brewer Lion Nathan (NZSE: LNN) wants another 4.5% of Montana (NZSE: MON) after reaching its initial 5% target early Thursday.

Lion's broker Credit Suisse First Boston has confirmed it bought 10.7 million Montana shares at $5.05, which is the upper price limit of Lion's offer.

The trade went through before the market opened.

CSFB says it has now been instructed to buy a further 4.5% or 9.66 million shares and has already bought just under 1.5 million of the extra stake. The stand in the market will close at the end of business tomorrow unless filled earlier.

Meanwhile a number of Montana's independent directors have confirmed they have sold part of their holdings in the winemaker.

Bryan Mogridge sold 490,000 shares for $2 million dollars at the beginning of March while earlier this month Barry Neville-White sold 409,000 shares for $1.86 million and Hylton Le Grice sold 221,000 shares for just over $1 million.

In a statement the independent directors said they wished to reiterate that their responsibilities were to continue to ensure the best outcome for all Montana shareholders.

"The independent directors had not recommended either of the current offers by Lion Nathan or Allied Domecq and they remained committed to a process that ensures all shareholders have an opportunity to realise their investment at a fair price if they so wished."

The directors say the current market price provides an opportunity for all shareholders to sell their holdings at a price at the upper end, and above, of the range recommended by the latest PricewaterhouseCoopers appraisal report.

The latest report valued Montana's upper range at $4.72 per share.

Earlier this week Allied Domecq announced it was delighted to have gained a strategic 10% holding in Montana.

If Lion Nathan fills its latest order for Montana shares it will take its holding to 61.5%.

Comments from our readers

No comments yet