Allied extends its offer for Montana

By DITA DE BONI liquor writer

Responding to Lion Nathan's repeated attempts to buy time with the High Court in the battle for Montana, British rival Allied Domecq has extended its offer for the winemaker once more.

The $4.80 a share offer from Allied will now close a week later on August 31.

Meanwhile, lawyers for Lion, Allied Domecq, stockbrokers CSFB, Montana and the Stock Exchange were last night still arguing over whether Lion should be given more time in which to sell its defaulting Montana shares.

Lion is making a High Court challenge against unfavourable decisions by the market surveillance panel's Montana committee.

This process that could overrun the August 17 deadline for Lion to sell.

Allied Domecq yesterday argued that it was Lion's own fault that it had delayed selling the 19 per cent holding, saying the High Court should not have heard Lion's request for more time.

A decision is expected on Monday.

The timing issue continues to be critical for the rival bidders.

Even if Lion's substantive case can be heard in three days next week, a finding against it will still leave the brewer only one day in which to sell its defaulting shares.

If it did not sell them by Friday, they would be returned to Montana to dispose of.

Lion's fear is that if Allied gets its hands on a substantial portion of the 19 per cent, it will be able to fulfil its quest for control of Montana.