Lion Nathan moves to swallow up Montana

By ELLEN READ AND NZPA

The tussle for ownership of Montana has intensified as brewer Lion Nathan tries to lift its stake in the winemaker from 51 per cent to 100 per cent.

Lion's investor relations director, Warwick Bryan, said the main purpose of the restricted transfer notice, filed with the stock exchange yesterday, was to respond to a similar move by rival bidder Allied Domecq.

Lion plans to offer between $3.95 and $4.70 a share for the extra shares.

It said any buying would take place between May 16 and August 16.

Last Friday, Allied told the exchange that it was still interested in buying Montana and would stand in the market again, offering between $4.16 and $4.64 a share until July 1.

Lion and Allied have been squabbling over Montana since February, when Lion trumped a bid by Allied to gain control of the company.

However, the exchange's market surveillance panel is investigating that deal.

Allied complained that Lion breached exchange rules, alleging Lion arranged to buy Montana shares before it was allowed to under a waiver granted by the exchange. A hearing is due early next month.

Under exchange rules, Lion could be forced to give up its shareholding in Montana if found guilty.

Allied's initial bid at $4.40 a share differed from Lion's in that it was for all of Montana's stock, rather than just enough to take Lion's stake to 51 per cent.

Lion's now contested offer for the 23 per cent it obtained was priced at $4.65.

James Reid, of brokerage JB Were, said some investors might want to get on the register in the event of more corporate activity if things went against Lion.

He said it was unlikely a third party would emerge with a competing offer.

Montana chairman Peter Masfen owns 21 per cent of the winemaker.

Yesterday, Lion Nathan finished unchanged on $5.05 and Montana closed up 5c at $4.20.