New suitor woos Montana

By Phil Boeyen, ShareChat Business News Editor

Wednesday 7th February 2001

Global liquor giant Allied Domecq has announced a bid for all the shares in winemaker Montana (NZSE: MON) at $4.40 a share.

The company, which owns such famous liquor brands as Beefeater gin and Kahlua, has announced a notice of restricted transfer through a subsidiary called Millstream Equities to take its shareholding to 100%

It says the transfer period will be for a week from this Friday and it will acquire shares solely on the order matching market of the NZSE.

Transfers on the bid are conditional on a sub-committee of independent directors unanimously recommending the offer. They also require acceptance by Montana chairman Peter Masfen and Masfen Holdings, and at least 50.01% acceptances.

The price for the shares is well above the ceiling of $3.80 offered by both Lion Nathan (NZSE: LNN), which currently holds around 28% of the company, and Masfen Holdings.

In December an appraisal report on Montana by PricewaterhouseCoopers valued the winemaker's shares at between $4.16 and $4.64, but Lion balked at the price and has not raised its bid.

A Lion spokesman says the company is considering its options in light of the Allied Domecq announcement.

With Lion's average entry price into Montana at $2.39 the brewer stands to make a profit of around $2 for each of its 60 million shares in the company if it chooses to sell.

Montana shares closed today at $4.04.

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