Investors left crying over spilt wine

By ELLEN READ

Veteran shareholder activist Max Gunn said the institutions that sold Montana shares for a "quick buck" should be ashamed.

"And it also demonstrates the fact that yet again the Stock Exchange has granted a waiver which enables this to take place and they have kowtowed as they always have done to big business," he said.

"I think it's absolutely devastating and it demonstrates how urgently the proper takeover and insider trading laws, which the Labour Government has promised, should be put in place."

Mr Gunn said the takeover again showed that Lion Nathan's directors were prepared to ignore minority shareholders.

He was referring to the takeover of Lion Nathan by Japanese brewer Kirin in April 1998.

Kirin bought a 15.6 per cent stake in Lion from chairman Douglas Myers and then announced that it wanted to lift that stake to 45 per cent.

That order was completed in minutes, meaning small shareholders had no chance of accepting Kirin's offer, which was 11 per cent above Lion's share price. Once the order was filled, the share price fell.