Battle for Montana in hiatus for a fortnight

The battle for Montana went into a holding pattern yesterday with both sides having to wait two weeks before being able to proceed with their latest offers.

Allied Domecq, which now holds 27 per cent of Montana, said it would not be increasing its bid of $4.80 a share for the rest of the winemaker.

Spokeswoman Jane Mussared rejected speculation that Allied might top rival Lion Nathan's partial offer of $5.50 a share for the 11 per cent it needs to ensure control.

"No, we don't have any intention of raising that bid," she said. "We're comfortable with the price we're offering."

Meanwhile, Lion, which is offering $3.70 a share for the rest of Montana if its partial bid is successful, is also sticking to its guns.

General counsel Duncan Makeig said Lion was in the process of complying with a ruling by the standing committee of the Stock Exchange that it sell 19 per cent of Montana (taking its holding to 44 per cent).

He denied a report, originally carried by Bloomberg, that Lion would seriously consider selling its shares to Allied if the price was right.

"Lion Nathan is committed to gaining control of Montana, Mr Makeig said. "It is better for Montana, New Zealand and its wine industry, and Lion Nathan's shareholders."