New report raises Montana value

By Phil Boeyen, ShareChat Business News Editor

Thursday 10th May 2001

A new appraisal report on Montana shares has valued them in a range between $4.24 and $4.72.

The range is slightly higher than a similar report in December which put the value of the winemaker between $4.16 and $4.64.

The new report has been compiled in light of a restricted notice of transfer from Lion Nathan to take 100% of the company. Lion already has 51%.

Lion's notice indicated a bid range of between $3.95 and $4.70 but the appraisal report's writers, PricewaterhouseCoopers, have dismissed the lower end of the bid.

"We are of the opinion that at prices below $4.24 Lion's proposed offer is not fair to the Non-Associated Shareholders of Montana, being those shareholders in Montana other than Lion and any parties associated with Lion," the report says.

In February Lion made a stand in the market for Montana shares at $4.65.

Both Lion and Allied Domecq - who lost out to Lion in a bid for control of Montana earlier in the year - have recently issued restricted transfer notices for Montana. Allied has indicated an offer between $4.16 and $4.64.

A hearing into whether Lion breached exchange rules when it purchased Montana shares earlier this year was held at the beginning of May and a decision on the matter is not expected for some weeks.

If the ruling goes against Lion it may have to divest some of its Montana holding.

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