No early Lion decision from Montana

By Phil Boeyen, ShareChat Business News Editor

Thursday 7th June 2001

Wine-maker Montana appears in no hurry to decide the fate of the disputed shares in the company held by Lion Nathan.

Following a standing committee ruling this week, in which Lion was found to be a defaulter on a number of securities it acquired in February, Montana must make a decision on what to do with those shares.

The standing committee found that Lion's broker, Credit Suisse First Boston, had arranged a number of share transfers before they were allowed under listing rules.

At question now is what will happen to those shares, and how many shares are affected.

Allied Domecq, which instigated the complaint over the transfers, believes Lion should be made to divest more than just the 10% stake acquired in pre-midnight trades on the evening of February 8. Allied currently holds 26% of Montana.

In its report the standing committee said that at the request of Lion's counsel it has left open the question of whether shares acquired outside the relevant period should be included.

It also said that it would hear counsel further if a decision on the penalty cannot be agreed.

The independent directors of Montana have met today to consider the report, but have not made any decision.

Montana deputy chairman, Barry Neville-White, says the directors will now seek independent advice to help respond to the report.

"We will take such time as is required to give the issues dealt with in the report full and proper consideration. A further meeting will be held early next week," he says.

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