Montana confirms Allied bid

By Phil Boeyen, ShareChat Business News Editor

Thursday 5th July 2001

Takeover target Montana says it has received a full offer from Allied Domecq for all the shares in the company it does not already hold.

Montana says it received a notice of intention from Allied's NZ company, Millstream Equities, on Wednesday to buy the rest of the company at $4.80 per share.

The offer is conditional on Allied receiving 50% of the voting rights and will close at the end of September.

The price being offered is the same at which Montana chairman, Peter Masfen, sold his 20% stake for in May.

Allied is currently restrained from buying any further shares in Montana until it explains to a Takeovers Panel hearing on Friday the 'irrevocable promise' it made last week to Montana shareholders to buy their shares for $4.80.

Neither Allied nor brewer Lion Nathan have let up in their fight over the winemaker, with Lion currently in the position of having to sell almost a third of its 63% stake because of its February breach of listing rules.

However it has already unveiled a new offer of $5.50 for 11% of Montana to take it back over the 50% threshold, and then wants to buy the rest of the shares at $3.70.

Despite media reports earlier this week that Lion may consider selling its stake to Allied, CEO, Gordon Cairns, has since reinforced that his company is intent of regaining the upper hand in the battle for control.

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