Montana requests raid investigation

By Phil Boeyen, ShareChat Business News Editor

Thursday 22nd February 2001

Winemaker Montana (NZSE: MON) has asked the Market Surveillance Panel to see if Lion Nathan (NZSE: LNN) breached the NZSE's 'notice and pause' provisions in its raid on the company's stock.

Montana says the request follows a formal complaint from its shareholder, global liquor giant Allied Domecq, whose $4.40 a share offer for the company was thwarted by Lion's actions.

Lion managed to nab a majority shareholding after the Market Surveillance Panel waived the 48-hour notice and pause provision required because it changed the offer of its notice of restricted transfer.

Lion offered $4.65 for Montana shares and gained much of what it wanted in off-market deals with institutions before going on market and giving smaller investors a bite at the price.

Montana says Allied Domecq's complaint is that Lion Nathan entered into restricted transfers prior to the expiry of the restricted transfer period, as modified by the waiver granted by the Market Surveillance Panel.

The winemaker says it considers that Lion may have breached Listing Regulation 4.5, with transfers of shares appearing to have effected on Thursday February 8th. Lion had permission to start buying shares on Friday, but not Thursday.

Montana says it wants a standing committee of "fully independent and appropriately qualified persons" to be appointed to conduct an investigation into the dealings between Lion Nathan and other Montana shareholders in the period prior to Friday, February 9th.

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