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How JB Were dropped the Montana ball

Friday 16th February 2001

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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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