Lion ups ante for Montana

By Phil Boeyen, ShareChat Business News Editor

Monday 14th May 2001

Lion (NZSE: LNN) has increased its upper price for Montana (NZSE: MON) shares to $5.05 as it prepares to go on market Wednesday for more of the winemaker.

The increase is the latest move in the ongoing fight for Montana, whose shares have climbed as both Lion and Allied Domecq reconsider what they are prepared to pay for the company.

Earlier today Lion Nathan announced it intended to buy to buy at least 5% more Montana shares and this afternoon said it had changed its restricted transfer notice to a range of $4.65 to $5.05.

Its earlier restricted transfer notice detailed a range between $3.95 and $4.70.

A substantial security holder notice was also issued to the market this afternoon showing Lion now holds 52% of Montana, up from 51% previously.

With Lion in the market from Wednesday it will once again be in the race for the shares with UK-based Allied Domecq, which continues to seek a strategic stake although wants to buy 100% of Montana.

Allied managed to gain just under 6% of Montana during a market stand on Friday at $4.55 although it had been aiming for 10%.

Allied brokers UBS Warburg withdrew the market stand this morning but Allied spokeswoman, Jane Mussared, says the company has been continuing to buy on market.

Montana shares closed today at $4.75, pushing them beyond the most recent appraisal report, which valued them between $4.24 and $4.72.

Comments from our readers

No comments yet