Lion piles on pressure in Montana war

Friday 18th May 2001

By Nick Stride

Lion Nathan yesterday continued piling the pressure on rival Montana bidder Allied Domecq, grabbing a further 5.67% to take its stake to 57.67%.

The brewer is now aiming for 61.5% at prices from $4.55-5.05.

Its range has been matched by Allied, which this week bought Montana stock for the first time ahead of a crucial Stock Exchange committee ruling, due in mid-June, on whether Lion jumped the gun buying a controlling 51% Montana stake in February.

Allied picked up 6% of the winemaker in a market stand at $4.55 a share and on Tuesday topped that up to 10% by buying shares from Montana executive chairman Peter Masfen and fellow directors at $4.80. Allied has issued a notice it could stand in the market at the same $4.55 to $5.05 range as Lion.

Lion has the upper hand as its average entry price is around $3.40, allowing it to pay much more than Allied to secure further shares.

But Allied could still carry the day if the Stock Exchange's investigating committee finds it breached listing rules when it bought shares on the night of February 8. It could be ordered to sell any part, or all of the 51% stake with which it started this week.

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