Takeovers Panel cracks whip at Lion - again

By Phil Boeyen, ShareChat Business News Editor

Tuesday 17th July 2001

The Takeovers Panel has restrained Lion Nathan (NZSE: LNN) for a second time from buying any more shares in Montana (NZSE: MON) because of concerns over its current takeover offer.

The new order is for 21 days and follows an initial restraining order made by the panel last Wednesday.

Lion currently has an offer of $5.50 a share on the table for 11% of Montana. It then intends to offer $3.70 to buy the rest of the company.

However after a meeting in Auckland yesterday to consider the offer, the Takeovers Panels claims it is not satisfied that Lion's intended conduct would comply with the Takeovers Code.

"The combined effect of numerous statements on behalf of Lion was that shareholders were encouraged to evaluate both offers together," the panel says in a statement.

"The panel considered that this constituted an offer at different prices which would not comply with Rule 20 of the code."

Lion will now have to rethink its offer while at the same time reconsidering how it plans to selldown 19% of its current holding that it has been told to divest as a penalty for breaching NZSE rules.

Yesterday the Montana Standing Committee found that the context of the selldown does not comply with NZSE listing rules.

The reasons for that decision have yet to be released.

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