Lawyers to rule on Montana raid

By Phil Boeyen, ShareChat Business News Editor

Wednesday 28th February 2001

The Market Surveillance Panel has appointed three lawyers to rule on whether Lion Nathan (NZSE: LNN) breached NZSE rules in buying shares in Montana (NZSE: MON) without adhering to the Exchanges 'notice and pause' provisions.

Montana last week requested the investigation, following a formal complaint from its shareholder Allied Domecq.

Allied Domecq missed out on buying the wine maker at its offer price of $4.40 after Lion, through broker CS First Boston, sewed up a number of deals with institutions to purchase shares at $4.65.

The Panel has appointed a Standing Committee to investigate the issue, made up of former judges Sir Duncan McMullin QC and Sir Ian Barker QC, and senior Queen's Counsel William Wilson.

The committee will take a look at whether Lion Nathan entered in agreements to transfer shares in Montana before it was entitled to under NZSE rules.

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