Montana probe to yield a quick result

Friday 4th May 2001

A quick ruling is expected after this weekend's hearing of the Lion Nathan/Montana takeover case.

The hearing will be conducted on Saturday and Sunday at Auckland's Northern Club before a committee of two retired judges and a Queen's Counsel appointed by the Stock Exchange.

The trio will examine witnesses and hear lawyers to determine whether Lion Nathan breached the exchange's notice and pause rules when it gained control of Montana by buying shares on the night of February 8.

A spokesman for the committee, lawyer David Quigg, said the hearing would be a "semi-formal" affair in the nature of an arbitration and was expected to last a day and a half if not longer.

Submissions from interested parties had been made "so already we've chopped down a lot of trees."

He said the committee had not given itself any deadline to make a ruling. But sitting at a weekend recognised the time constraints involved "so you're not going to sit on your decision for two months."

He expected the committee to rule within two weeks.

Rival Montana bidder Allied Domecq has brought forward to Monday the date on which it can launch a counter-bid at between $4.16 and $4.64 a share.

Lion has also given notice it may enter the market, from May 16, to bid for up to 100% of Montana at between $3.95 and $4.70.

If the committee finds Lion breached the rules Montana can require the brewer to sell shares, or sell them itself. But whether that could entail the entire 51% holding, those shares bought on the night of February 8, or only certain share parcels remains unclear.

- Nick Stride

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