Rumour puts fizz into Montana's shares

By Geoff Senescall

Montana Wines bucked the market trend and rose 13c to 208c as takeover rumours continued to surround the company.

Once again Montana chairman Peter Masfen was said to have sold, or was about to sell, his 20.8 per cent stake.

According to the speculation an offer had come from Fosters Brewing at 235c a share. Lion Nathan had been offered the opportunity to counter.

But as one broker said yesterday: "If I had a dollar for every time Montana had been sold I would be a rich person."

The speculation was greeted with similar disdain by the Montana chief executive Peter Hubscher. "Rumours have been floating around for so long I have given up thinking about them."

Meanwhile, the sharemarket plummeted 1.34 per cent pushing the NZSE-40 perilously close to the psychologically-important 2000 barrier.

The drop followed a big fall on Wall St last Friday. Adding further to sentiment was Friday's New Zealand GDP figures, which showed the economy went into reverse in the June quarter.