Parties still far apart in Montana dispute

By FRAN O'SULLIVAN

The Stock Exchange's market surveillance panel will have to overcome wildly differing views as it forges a resolution to the Lion Nathan defaulter securities dispute.

A panel division led by Auckland company director Bill Falconer asked all the affected parties to make submissions by 4 pm yesterday.

But a consensus has yet to emerge between Lion Nathan, its takeover rival Allied Domecq, Montana's independent directors and an exchange standing committee which last ruled Lion Nathan had breached market listing rules.

Mr Falconer said the panel would establish a manner in which all the issues could be dealt with in a consistent fashion and provide a framework for resolution.

The panel - which includes Auckland company director Alison Paterson and Tim McGuinness - will resume deliberations at the Wellington exchange this morning.

The panel is expected to inform the parties of its decision later today before making a short public statement. But Business Herald inquiries indicate that the parties are far apart.

Lion Nathan says the panel should decide the defaulter security question, rule on the number of any affected Montana shares and decide an appropriate remedy.

Lion Nathan chief executive Gordon Cairns said the overarching objective was to get a decision quickly and effectively. "The process we have outlined does that."

For its part, Allied Domecq has not changed its position and wants Montana's independent directors to decide.

Allied corporate affairs director Jane Mussared said the latest developments were a delaying tactic.

"It was completely clear by law and whoever has asked for this to change is I think confusing the issue entirely - it certainly isn't us and I doubt it would be Montana.

"We believe it has been a very serious breach - we would like a serious penalty applied. The directors are the appropriate people to make the decision." "

On Wednesday, Montana's independent directors pulled an expected statement which was to lay out their resolution process.

The directors were understood to favour asking the standing committee which made last week's controversial ruling against Lion Nathan to decide the quantum of affected Montana shares.

Once the committee - Sir Duncan McMullin, Sir Ian Barker and Bill Wilson, QC - had made its decision, the Montana directors would then decide the appropriate remedy. But the committee's job effectively stopped when its report was issued.