Panel finds complaint unfounded

By DITA DE BONI liquor writer

The Stock Exchange's market surveillance panel has found "no basis" for Allied Domecq's latest complaint over Lion Nathan's actions during its forced sale of Montana shares.

The panel issued a brief statement yesterday, saying that in response to the urgent complaint from Allied, it "informally interviewed legal representatives from Allied and Lion and found no basis for the complaint".

The panel declined to comment further.

Meanwhile, Lion confirmed yesterday that it would not make a partial takeover offer for Montana.

This means that any new bid will be for 100 per cent of the winemaker. Lion is free to announce any new offer on Monday.

Allied complained on Wednesday that a sudden increase in the value of Montana shares that day suggested a buyback arrangement or understanding had been struck between the brewer and the institutions to which it had sold its defaulting 19 per cent shareholding in Montana.

It transpired that Lion had arranged 15 institutional buyers for the shares at $4.65 a share, with the stock gaining 30c that day to match the offer price at the close of trade.

Allied saw this as evidence of foul play, but the price was thought to have gained on speculation that any further bid from Lion would be for 100 per cent of the company.

On the market, Montana shares have continued to gain momentum as the bidding war cleared legal hurdles.

They closed yesterday up 1c at $4.80, the same price Allied Domecq is offering. The Allied offer closes on August 31.