Allied gets Montana green light

By Phil Boeyen, ShareChat Business News Editor

Thursday 30th August 2001

Montana's (NZSE: MON) directors have recommended shareholders accept Allied Domecq's offer of $4.80 per share for the company.

The company's independent directors recommended the bid earlier this month, following an appraisal report that valued Montana's shares in a range between $4.28 and $4.72.

Last week Lion Nathan (NZSE: LNN) announced it was selling its remaining 44% to Allied at the offer price, putting an end to the six-month fight for control of the winemaker and allowing Allied to declare its takeover unconditional.

A substantial security holder notice filed by Allied's investment vehicle, Millstream Equities, yesterday showed the company now owns 75% of the company.

"With the announcement on 24 August by Lion Nathan Enterprises Limited that they were accepting the Millstream offer for their 44% shareholding in Montana, it would indicate that any further offers by another party would be highly unlikely," Montana says.

"As the price offered by Millstream of $4.80 per share exceeds the valuation range in the PricewaterhouseCoopers report of 3 August (being a range of $4.28 to $4.72), the independent advisors considered the offer represents a "full and fair" offer."

The closing date for the Allied offer is tomorrow.

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