Panel keeps watch on Allied Domecq

By Phil Boeyen, ShareChat Business News Editor

Monday 2nd July 2001

The Takeovers Panel is flexing its newly legislated muscle by issuing a restraining order against global giant Allied Domecq.

The order restrains Allied's local investment vehicle, Millstream Equities, from "acquiring securities or any interest in or rights relating to securities in Montana group unless in compliance with the takeovers code."

On Friday Allied made an 'irrevocable promise' to shareholders of Montana Group to purchase 23% of shares at a price of $4.80 per share.

The promise is seen as a legal manoeuvre to get around the new takeovers code, but it has caught the eye of the Takeovers Panel.

'The Takeovers Panel considers that that may have the effect of increasing the percentage of voting rights by Millstream Equities and controlled by Allied Domecq Plc," it says in a statement.

"The panel considers that Millstream Equities and/or Allied Domecq Plc 'may not have acted or may not be acting or may intend not to act' in compliance with the Takeovers Code. On the information available to the panel it is not currently satisfied that section 23(b) of the Takeovers Act 1993 exempts Millstream Equities and/or Allied Domecq Plc from compliance with the Takeovers Code."

The panel is planning to meet on Friday to decide what action, if any, it will take.

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