How JB Were dropped the Montana ball

Friday 16th February 2001

Allied Domecq's local sharebroker, JB Were, missed an opportunity to secure Montana for its client, even after Lion Nathan declared it had 46.5%.

Here's how it could have done it:

On Friday morning, with the shares suspended from trading until Monday, Montana chairman Peter Masfen had 20% and the outstanding minorities 33.5% - together enough to grab control.

Mr Masfen had already said he would accept Allied's bid.

Lion was seeking only a further 4.5% of Montana's shares or less than a seventh of the minorities' holdings. So for them, the choice was between a guaranteed $4.40 for all their shares from Allied or a slim chance of getting $4.65 for a maximum 5000 shares.

Had JB Were taken out national advertising over the weekend pointing this out - a common practice overseas - it's likely Lion Nathan's stand in the market on Monday would have found few takers.

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