Committee to examine Lion Nathan share buy

The Stock Exchange's market surveillance panel yesterday agreed to a request by Montana Group's directors to appoint an independent standing committee to examine purchases of Montana shares by Lion Nathan.

The committee will investigate and issue rulings related to Lion Nathan's acquisition of Montana shares on either February 8 or February 9.

The panel hopes to confirm the membership of the standing committee shortly.

Last week, a letter - obtained by the Business Herald - from Montana's lawyers Bell Gully to the panel asked that Sir Duncan McMullin, Sir Ian Barker and/or Bill Wilson be appointed to the committee.

Montana's non-executive directors called for the investigation primarily to ascertain whether Lion Nathan breached the Stock Exchange's listing rules and jumped the gun in acquiring Montana shares before the time allowed by a panel waiver earlier in the month.

The request follows an acrimonious takeover battle in which Lion Nathan gained a controlling 51 per cent stake in Montana after a bidding war with British-based Allied Domecq.

Panel secretary Philippe Leloir confirmed yesterday that membership of the committee should be confirmed soon.