Anatomy of a fiasco

Friday 16th February 2001

May 2000: Lion Nathan takes 15% stake and seeks 19.9% on-market.

August 2000: Lion raises stake to 28%

November 2000: Lion files notice of restricted transfer (NRT) indicating its intention to lift its stake to 51% at prices between $3.20 and $3.80.

December 3, 2000: Peter Masfen files NRT - same stake, same prices.

December 8, 2000: Commerce Commission clears Lion to buy 100%.

Mid-December 2000: ANZ Corporate Finance approaches Allied Domecq with Montana investment proposal, introduces Allied to Peter Masfen.

Wednesday, February 7, 2001, 4.39pm: Allied Domecq subsidiary Millstream Equities files NRT - 100% of Montana at $4.40 a share. Can buy shares on Friday.

Thursday, February 8:

8.13 am: Montana independent directors recommend Millstream offer.
9.20am: Lion files NRT raising offer price to $4.65-$4.80. As an insider under Stock Exchange listing rule 4.5.4, Lion can't buy shares until Monday.
9.30am: Millstream announces market stand on Friday when NRT expires.
1pm: Lion asks Stock Exchange market surveillance panel for a waiver from LR 4.5.4, requests ruling by 5pm.
4.41: Panel "division" of Paul Bevin, Denis Wood and Sir Ian McKay grant waiver. Lion announces it will buy shares at $4.65-$4.80 from midnight. Lion's brokers, Credit Suisse First Boston, line up institutional shareholders.

Friday, February 8

12.01am: Lion starts taking undertakings to sell from institutions
8.16am: Lion has 46.46%, says will stand in the market for 4.5% at $4.65.

12.21pm: Montana independent directors say market surveillance panel won't revoke waiver. They "understand" Millstream would have counter-bid against Lion's latest offer.

Monday, February 12: Lion stands in the market for 5000 shares from each Montana shareholder at $4.65 a share. Secures 51% and control.

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