Montana panel asks for silence

By FRAN O'SULLIVAN

Takeover rivals Lion Nathan and Allied Domecq have been asked not to publicise the Montana defaulter securities issue until a Stock Exchange committee gives its ruling.

The standing committee considering Lion Nathan's buying of Montana shares met at the Northern Club in Auckland at the weekend.

The committee's lawyer, Sarah Katz, said it heard submissions from Lion Nathan and rival Montana bidder Allied Domecq.

It would consider the two takeover rivals' arguments before giving a decision "as soon as possible."

The committee, comprising retired High Court judge Sir Ian Barker, retired Court of Appeal judge Sir Duncan McMullin and Bill Wilson, QC, is dealing with rule breaches by Lion Nathan in buying Montana shares on February 8.

The Stock Exchange said the issues to be decided were:

* How many Lion-owned shares were now, as a result of the committee's earlier finding that there had been rule breaches, defaulter securities.

* Whether Lion's transferral of those shares, with a month's notice, would remedy the default.

Allied Domecq has said that Lion Nathan should forfeit its 62 per stake in Montana as a "penalty" for its actions in jumping the gun and lining up share sales during a takeover pause period.

Lion Nathan has argued that only 9.9 per cent of Montana shares were caught by the "technical breach."

The committee is expected to give its ruling to the Stock Exchange before telling the parties.

Ms Katz said the committee had yet to consider Lion Nathan's counter-claim against Allied Domecq.

Lion Nathan has alleged that Allied Domecq had an arrangement with Montana chairman Peter Masfen over the sale of his 19 per cent shareholding to the British drinks company.

Ms Katz said Lion Nathan had been asked to outline a timetable for dealing with the allegation.