New breach claim from Allied Domecq

By Phil Boeyen, ShareChat Business News Editor

Thursday 5th July 2001

Lion Nathan (NZSE: LNN) is being accused of breaching the decision by the Montana Standing Committee that the brewer divest 19% of its Montana (NZSE: MON) shares.

When it gave its decision late last month on how many shares Lion should sell, the Standing Committee said it was essential that "there be no contract, arrangement or understanding in place by which Lion Nathan has any form of continuing entitlement to or interest in the shares sold."

The committee said that, provided it does not have any such contract, arrangement or understanding in place at the time of transfer, Lion was free at any subsequent time to purchase Montana shares from any transferee of shares which are sold pursuant to the ruling.

Allied Domecq now claims that the sale of the 19% is inextricably linked with the new takeover offer to shareholders for 11% at $5.50.

"Lion Nathan's announcement and subsequent comments in the media say as much," the company says in a statement.

Allied says it has raised the issue with the Market Surveillance Panel and requested that the Standing Committee meet urgently to rule on whether Lion Nathan has breached its decision.

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