Lion still on prowl for Montana

By Phil Boeyen, ShareChat Business News Editor

Thursday 8th February 2001

Brewer Lion Nathan (NZSE: LNN) has clawed back at a bid for Montana (NZSE: MON) by UK-based liquor giant Allied Domecq by lifting its own offer to between $4.65 and $4.80.

This outguns the $4.40 Allied Domecq bid which was made yesterday and has been recommended by Montana's independent directors and accepted by Montana chairman Peter Masfen.

Previously Lion Nathan's restricted notice of transfer offer was between $3.20 and $3.80.

Lion's CFO, Paul Lockey, says his company acquired its position in the winemaker for strategic reasons and does not plan to sell its 28% stake.

"In fact, we are committed to increasing our holding to 50.1% and will be standing in the market on February 12th with an unconditional bid at a price of NZ$4.65."

Montana independent director Barry Neville-White says the new Lion offer will be considered Friday morning.

"The only criticism I would have at this stage is that the offer is only open to 22% of the shareholders," he says.

Late last year an appraisal report put a valuation of between $4.16 and $4.64 on Montana but this was dismissed by Lion as highly ambitious.

Whether the brewer believes the value of the company has changed that much in just a month - or whether it is trying to get Allied Domecq to up its offer - remains to be seen.

The two companies were in business together in New Zealand until last year when Lion bought out Allied Domecq's stake in liquor wholesaler New Zealand Wines and Spirits.

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