Montana has big profit rise in view

By Dita De Boni

Montana Group has forecast a 50 per cent increase in profits for the six months to December - a precursor for what it says will be a 130 per cent volume growth over the next five years.

At the company's annual meeting yesterday management also predicted a net surplus for the year to June 2000 of $30 million, a growth of around $5.6 million on this year's result.

The meeting comes a day after Guinness Peat Group increased its stake in Montana to 5.14 per cent.

GPG brought extra shares off AMP, which has reduced its shareholding to 8.2 per cent to bring it "closer to its index weighting," Montana chairman Peter Masfen said.

Mr Masfen told the Business Herald that shareholders had many questions about GPG's interest in the company, but had expressed "no strong opinions either way and have no reason to feel insecure."

He said he had no idea if GPG was likely to increase its shareholding, saying only that GPG director Tony Gibbs was "thrilled to be a shareholder and regarded the company as exciting."

Montana was a strategic purchase that had attracted plenty of interest, Mr Masfen said, although he declined to confirm whether Foster's or Lion Nathan - the two companies most strongly rumoured to be eyeing up Montana - were among those interested.

Once again he denied he would be selling down his 20 per cent holding in Montana.